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MAN Completes Buy Of VW Unit In Brazil

German truckmaker has completed the $1.5 billion purchase of Volkswagen AG's truck and bus operations in Brazil, announced in December.

FRANKFURT (AP) -- German truckmaker MAN AG said Tuesday the company completed the €1.2 billion ($1.5 billion) purchase of Volkswagen AG's truck and bus operations in Brazil, announced in December.

Munich-based MAN said the unit had sales of about €2 billion in fiscal 2008, and that its Latin American operations will be integrated into a new business unit called MAN Latin America.

The new unit will be headed by Roberto Cortes, a Brazilian, who will also join the MAN management board, the equivalent of a board of directors.

"The completion of the acquisition marks a new chapter in the history of our Group," said Hakan Samuelsson, MAN's chief executive in a statement.

"This is our platform for growth in Latin America involving both commercial vehicles brands of the Group," meaning MAN would hold on to the VW logo for some time, he said.

The VW unit was the largest truckmaker and market leader in Brazil, selling about 56,000 trucks and busses in 2008, according to MAN.

Shares of MAN were down 4 percent at €32, while shares of VW were flat at €215.30 in Frankfurt afternoon trading.