Published on Mon, Sep 25, 2006 at 17:02 | Source : reuters
Updated at Tue, Sep 26, 2006 at 19:59
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Volvo takes major stake in Nissan Diesel
Swedish truckmaker Volvo said on Monday it would pay 4 billion crowns (USD 553.2 million) to lift its Nissan Diesel Motor Co stake by 33.5% to 46.5%, boosting its Asian business, reports Reuters.
Swedish truckmaker Volvo said on Monday it would pay 4 billion crowns (USD 553.2 million) to lift its Nissan Diesel Motor Co stake by 33.5% to 46.5%, boosting its Asian business, reports Reuters.
Volvo, the world's number two truckmaker, is under pressure from activist shareholder Cevian to lift shareholder returns. Volvo wants to complete acquisitions before raising payouts.
The latest Nissan Diesel acquisition is part of that strategy. Volvo said it was buying the remaining 6 percent in Nissan Diesel - the smallest of Japan's four truckmakers, owned by Nissan Motor Co for 500 million crowns.
It was also acquiring preference shares, to be converted into ordinary stock in stages between 2008 and 2014, owned by Nissan Motor and banks, for 3.5 billion crowns.
"Combined, these lots correspond to 46.5% of the shares in Nissan Diesel," Sweden-based Volvo said. Ownership would be at 41.9% by April 1, 2008, it added.
Faced with maturing markets at home, truckmakers in Europe and Japan have been seeking growth in Asia, forming both operational and capital partnerships with each other.Volvo paid Nissan Motor 1.5 billion crowns in March for an initial 13%, becoming Nissan Diesel's top shareholder.
The latest Nissan Diesel acquisition is part of that strategy. Volvo said it was buying the remaining 6 percent in Nissan Diesel - the smallest of Japan's four truckmakers, owned by Nissan Motor Co for 500 million crowns.
