BERLIN (Reuters) – Bosch said on Friday it had agreed to increase its shareholding in Husqvarna to roughly 12%, making it one of the Swedish company’s biggest shareholders, as the German auto supplier seeks to strengthen the companies’ battery alliance.

Shares in Husqvarna, a garden equipment company, were up 12.6% by 0839 GMT following the announcement of the deal.

“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 in a statement.

Husqvarna was not immediately available when contacted by Reuters for comment.

The garden equipment company makes outdoor power products, consumer watering products, cutting equipment and diamond tools for construction and stone industries.

Bosch’s power tools division set up a “Power for All Alliance” together with Husqvarna subsidiary Gardena in 2020. The 10-brand alliance features products relating to all home-based activities for the European market, Bosch said.

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. This is subject to regulatory approval in Brazil, where cartel authorities have a low threshold for stakes to be authorized.

“There are currently no plans for a full takeover”, the spokesperson added.

 

(This story has been corrected to show that Bosch will be one of Husqvarna’s largest shareholders, not the largest shareholder, in the first paragraph)

 

 

(Reporting by Niklas Pollard, Agata Rybska and Ilona Wissenbach; Writing by Rachel More; Editing by Miranda Murray)