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Norway continues to talk money on Sweden - their Oil fund becomes the second largest owner of Swedish Volvo AB

Monday, 21 January 2013
Norway's Wealth Fund, also known as the Oilfund has emerged as the second largest owner of Volvo AB, shifting closer to investment company, Industrivärden, which is still the biggest shareholder of the company.

According to Swedish business daily, Dagens Industri, the Norwegian wealth fund has been collecting the shares of Volvo AB, especially those left behind by Renault when it sold the shares last December.
It was expected that the sales by Volvo shares by Renault last December would make a Swedish company to step up and buy them so that Volvo AB could become much more Swedish owned. Investment Company, Industrivärden emerged but had to buy so much and thus the Renault's farewell did not mean that Volvo was to become a Swedish affair.

The paper reports that according to new data from the SIS Ägarservice, Norway's Oil Fund made a huge launch on Volvo. Since the beginning of December, the Fund has purchased 18 million Volvo shares, worth Skr1.7 billion based on today's exchange rate.

After the deal the Fund now shadows Industrivärden as the largest shareholder of Volvo. The oil fund has 4.7 percent of the shares in the industrial giant, while the largest owner Industrivärden has 6.2 percent. In power terms, however, the gap is bigger. Industrivärden benefited from Renault's sales because most of Renault's shares are the weaker B-Share series, which automatically boosted the investment company's (Industrivärden) voting power.

Industrivärden has 18.7 percent of the vote against the oil fund's 4.9 percent, according to SIS Ägarservice.

Norway's oil fund has seen its fortunes fluctuated in the past years as the economies in which it invests in undulates. The fund has holding in companies such as Nestlé, Royal Dutch Shell, and Apple.
By Scancomark.com Team

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