By Dominic Chopping

STOCKHOLM--Volvo AB said Monday that it has now signed the previously planned binding agreement for a joint venture with Daimler Truck AG to develop, produce and commercialize fuel-cell systems.

Earlier this year Daimler Truck said it had created the Daimler Truck Fuel Cell GmbH subsidiary to unify the German company's fuel-cell activities ahead of a joint venture with Volvo.

Volvo will acquire 50% of the partnership interests in Daimler Truck Fuel Cell for approximately 600 million euros ($698.8 million).

Volvo and Daimler Truck will own equal interests in the joint venture, but continue to be competitors in all other areas such as vehicle technology and fuel-cell integration in trucks, they said.

Both companies aim to start with customer tests of trucks with fuel-cells in about three years and to be in series production during the second half of this decade.

Closing of the transaction is expected during the first half of 2021. The transaction is still subject to merger control review by the relevant authorities, as well as other approvals.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 02, 2020 02:33 ET (07:33 GMT)