Volvo pitches $1B for Nissan Diesel

STOCKHOLM, Sweden — AB Volvo has made a move to acquire the balance of Japan’s Nissan Diesel in an attempt to deepen its footprint in the Asian market.

Volvo offered $1.07 billion for full ownership of Nissan Diesel from the current 19 percent, reports Associate Press. Volvo also says Nissan’s net interest-bearing debt at $1.07 billion, bringing the total price tag of the deal to just over $2 billion.

While Volvo — the world’s second largest truckmaker after DaimlerChrysler — has a heavy presence in North America and Europe through Volvo, Mack, and Renault brand trucks, it lacks any local flagship commercial vehicle in Asia.

The deal — if approved by antitrust regulators — is expected to be completed March 29, Volvo said.

According to AP, Nissan Diesel Motor President Iwao Nakamura expressed support for the tender offer, saying the move will save costs in development and purchasing, including emission-reducing technologies.

Volvo is reportedly aiming for about 25 percent market share in Asia.
Nissan controls about 24 percent of the Japanese heavy truck market and 15 percent in the medium-heavy segment.

In the U.S., Nissan Diesel sold about 1400 class 6 and 7 trucks last year.

— from Associate Press