FRANKFURT, Germany (AP) -- German truck maker MAN AG said Monday it will buy Brazil's VW Truck & Bus with the aim of completing the transaction at the start of 2009.
In a statement, Munich-based MAN, which competes with rivals like Daimler AG and Volvo, said the deal for Resende, Brazil-based VW Truck from Volkswagen AG calls for it to be transferred on Jan. 1.
Boards for both companies have approved the deal. No price was immediately disclosed.
VW Truck has been making trucks and buses in Resende since 1996 and is Brazil's biggest truck maker, having produced 47,000 trucks and buses in 2007. The plant employs 5,000 workers.
"Acquiring the Brazilian company and its strong brand enables MAN to expand into the South American market, one of the fastest-growing regions, thus consistently strengthening its commercial vehicles business," MAN said in a statement.
Shares of MAN were up a quarter of a percent to euro35.34 ($47.14) in Frankfurt trading.