BERLIN (Reuters) - Bosch has agreed to increase its shareholding in Sweden's Husqvarna to roughly 12%, making it one of the biggest shareholders, in a move to strengthen their battery alliance, the German auto parts maker said.
Shares in Husqvarna, a garden equipment company, gained as much as 16% on Friday following the announcement. At 1245 GMT, they were up 11%.
"We welcome Bosch as a large shareholder in the Husqvarna Group," Board Chairman Tom Johnstone said in a statement on Friday.
The German company has so far bought less than 5% of Husqvarna shares and has an agreement for around 7% more, a Bosch spokesperson said. The deal is subject to regulatory approval.
"There are currently no plans for a full takeover," the spokesperson added.
Bosch gave no details on the price it paid for the stake.
Husqvarna makes outdoor power products, consumer watering products, cutting equipment and diamond tools for the construction and stone industries.
In 2020, its Gardena subsidiary set up a battery alliance with Bosch's power tools division which aims to offer a broad, cross-brand 18-volt system, Bosch said.
"We are pursuing a systematic growth strategy with our business activities for consumers. This also includes strengthening existing partnerships through equity interests," Christian Fischer, deputy chairman of Bosch's management board, said.
(Reporting by Niklas Pollard, Agata Rybska and Ilona Wissenbach; Writing by Rachel More; editing by Miranda Murray and Sharon Singleton)