Volvo to complete purchase of Nissan Diesel
By IBI Magazine
Volvo has announced that it has raised its stake in Nissan Diesel to 96 per cent after its offer to acquire the Japanese truck manufacturer expired on Friday.
Volvo, which already owned 19 per cent of the shares in the company before the offer was made, also owns all 57.5 million preference shares in Nissan Diesel. Volvo will pay a total of SEK 7.4 billion for the shares now submitted and payment is expected to be made on or about March 29.
"It is pleasing that we received such a level of acceptance," says Volvo's CEO Leif Johansson. "We foresee major mutual benefits for the Volvo Group and Nissan Diesel with this transaction and it is highly satisfying that owners in Nissan Diesel share this view."
Volvo says that it intends to initiate a process to redeem the remaining shares in Nissan Diesel since the company has received more than the two-thirds of the shares and votes required for this in accordance with Japanese law. The remaining shares are expected to be redeemed by the end of September, after which time Volvo will apply to delist Nissan Diesel from the Tokyo Stock Exchange.
As of Q1 2007, Nissan Diesel will be consolidated in the balance sheet of the Volvo Group, and sales and earnings will be reported as of the interim report for the second quarter. Operations within Nissan Diesel will be reported within the Trucks segment.
Because Nissan Diesel will not be releasing its year-end report for 2006 until May 11, Volvo has decided to postpone its first quarter interim report from April 25 to May 11, 2007.
(26 March 2007)
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