Volvo’s Purchase of Renault Cleared by European Union

The executive agency of the European Union has cleared the way for Volvo to become the world’s second largest truck manufacturer with the purchase of Renault SA.

In a decision announced Sept. 1, EU officials approved the acquisition on the condition that the companies sever their links with Scania AB and Fiat SpA’s Iveco unit. The decision was also contingent on the companies’ ability to fulfill certain other conditions on a timetable keyed to approval of the deal by the U.S. Department of Justice.

“We are pleased that the EU authorities have given their approval without a further investigation and with reasonable concessions,” said Leif Johansson, chief executive officer for Volvo. “The divestiture of our Scania shareholding is a question of the right price, and my assessment is that this issue will be resolved well before the EU’s time limit runs out.”

Volvo has three years after DOJ approval to get rid of its Scania holdings, which amount to about 20% of the Swedish rival truck maker’s stock.

For the full story, see the Sept. 11 print edition of Transport Topics. Subscribe today.