Volvo to Buy Renault’s Truck Operations
Volvo AB, rebuffed in its recent attempt to acquire rival Scania, has struck a tentative deal to acquire the truck division of Renault SA for more than $1 billion, which would create Europe’s largest truck manufacturer and further consolidate the U.S. truck market.
Volvo shareholders approved the deal on April 26. Renault’s shareholders are expected to do so soon, although a date for the vote was not announced. The transaction will also require approval from regulatory authorities in the United States and the European Union.
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The deal, which was announced April 25 in Stockholm, Sweden, calls for Volvo to pay $1.5 billion in stock — about 15% of its shares — for the truck division, which includes Renault VI in Europe and Mack Trucks in the United States.
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A press release from the Swedish truck manufacturer notes the transaction is expected to be completed later this year.
