Volvo to Buy Ingersoll Rand’s Road-Development Business

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Volvo AB has agreed to buy Ingersoll Rand Co.’s road building-equipment unit for $1.3 billion, in a deal that would make it the world’s third-largest maker of construction equipment, Bloomberg reported Tuesday.The equipment unit, which reported revenue of $864 million last year, would add to Volvo’s construction product range, Volvo Chief Executive Officer Leif Johansson said in a statement.Sweden-based Volvo — the parent company of Volvo Trucks North America and Mack Trucks — has been making acquisitions as a booming eastern European truck market led to record profits, Bloomberg reported.Volvo is seeking to boost its construction equipment division, its fastest growing unit, to compete with Caterpillar Inc. and Komatsu Ltd., two largest makers of heavy equipment, Bloomberg said.