Fiat’s Iveco Seals Buyout of Controlling Stake In Spain’s Enasa
MADRID, Spain (AP) _ Fiat SpA’s Iveco truck unit took control of 60 percent of Spain’s state- held ENASA truckmaker Thursday, sealing a deal reached last September, the Spanish firm’s parent company said.
Iveco, Europe’s second-largest truckmaker, paid 1.2 billion pesetas, or $10.2 million, for the stake in Empresa Nacional de Autocamiones SA, according to a spokesman for Spain’s state industrial group, Instituto Nacional de Industria.
At a first meeting Thursday in Madrid of the new joint venture’s eight- member board, the directors elected Italian Paolo Anibaldi president of the newly renamed Iveco-Enasa SA, the spokesman said.
Iveco now has five seats on the board and INI has three.
Under the sale agreement ratified Thursday, Iveco also has a six-year option to purchase INI’s remaining Enasa shares.
INI agreed to sell the controlling stake in the unprofitable truckmaker to guarantee Enasa’s future viability in the European market and the jobs of the company’s 5,500 employees.
Enasa holds the largest share of the Spanish truck market.
Iveco is Europe’s second-largest truckmaker after Germany’s Daimler-Benz AG, which with German partner Man AG, originally outbid Fiat-Iveco for a controlling stake in the company in November 1989.
But the Daimler-Man offer to buy 80 percent of Enasa collapsed under strong opposition by West German anti-trust officials who argued it would undermine competition in the German truck market.
Enasa builds the top line Pegaso brand of heavy trucks as well as light industrial vehicles.