Volvo-Renault deal accepted by the US
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• by Brian Weatherley
Volvo's takeover of Renault VI and Mack has been approved by the US Department of Justice. The move has already been approved by the EU.
Under the deal AB Volvo gets Renault's CV operation, including Mack Trucks, while Renault SA gets 15% of AB Volvo's shares in exchange.
Volvo Group boss Leif Johansson says: "After the closing we can immediately start the integration process. We are very eager to imple ment the strategy for the new truck group and the merged power-train units."
The move makes Volvo the world's sec ond-largest heavy truck maker and Europe's biggest.
However, as a condifon of the deal Volvo will have to sell off its North American low cabover engine (LCOE) truck business. The US Department of Justice decided Volvo would have had an unfair dominant position in the US waste truck sector, which represents 3% of the US heavy truck market.
Johansson says: "The LCOE segment is only a limited portion of our North American truck operations." Last year Volvo sold 2,100 Xpeditor LCOE trucks into this sector.
Under last September's EU ruling Volvo also has to sell off its remaining stake in Scania within the next three years, while Renault has to dispose of its 50% stake in AS Hansa Oythe joint distribution and marketing operation it set up with Finnish manufacturer Sisu.
lw Commercial Motor will examine the implications of the deal in next week's issue.