February 21, 2007

Volvo makes bid for Nissan Diesel

Goteborg, Sweden – AB Volvo’s Board of Directors has decided to make a public offer to acquire the Japanese truck manufacturer Nissan Diesel. Volvo already owns a 19 per cent holding in the company.

“With Volvo as owner, Nissan Diesel gains the resources and the financial stability needed to fully capitalize on the opportunities that a closer cooperation offers to both parties,” says Volvo CEO Leif Johansson. “Nissan Diesel’s products and know-how represent a valuable complement to the Group’s truck business. Nissan Diesel holds a solid position in Japan and the rest of Asia where the Volvo Group foresees substantial growth potential. A merger offers both parties even greater possibilities to learn and benefit from each other’s know-how and resources.”

In 2005, Nissan Diesel sold approximately 42,000 trucks and buses; in Japan, it holds a market share of about 24 per cent in heavy trucks and 15 per cent in the medium-heavy segment. The company has 8,900 employees.

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