GOTEBORG, SWEDEN – Volvo will make a $1.1 billion bid for Nissan Diesel, a bid supported by the directors of both companies, reports The Trucker. AB Volvo’s board of directors decided to make a public offer to acquire the Japanese truck manufacturer, in which it already owns a 19 percent holding in Nissan Diesel and preference shares (which can be converted to an additional 27.5 percent, after full dilution). The major portion of the integration gains comes as a result of increased purchasing volumes, though the acquisition should have positive effects in product development, engines, and drivelines, as well as dealer and service networks.

Volvo’s offer for Nissan Diesel represents a premium of 32 percent based on the average prices during the past three months. Since Volvo’s first purchase of shares in Nissan Diesel, Volvo’s Deputy CEO Jorma Halonen was appointed vice chairman in Nissan Diesel’s Board.
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