Sweden: Volvo to complete acquisition of Nissan Diesel

TOKYO (XFN-ASIA) - Swedish truck maker Volvo AB has successfully acquired Japanese truck maker Nissan Diesel Motor Co Ltd, the companies said Saturday.

In a friendly takeover bid, Volvo received roughly 96 pct of the shares outstanding in Nissan (nasdaq: NSANY - news - people ) Diesel which controls nearly a quarter of the Japanese truck market.

'It is pleasing that we received such a level of acceptance,' Volvo's chief executive Leif Johansson said in a statement. '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.'

Nissan Diesel has said the deal would allow greater investment in research and development to meet global regulations on vehicle emissions, which are expected to become more costly in the United States, Japan and Europe by 2010.

Volvo, which previously owned a 19 pct stake in Nissan Diesel, had proposed 540 yen per share for the remainder of the company, valuing the Japanese group at 135 bln yen.

Volvo has concentrated on trucks after selling its Volvo Cars division to US group Ford in the late 1990s.

In 2001, the Swedish truck maker took over Renault (other-otc: RNSDF.PK - news - people ) Trucks, the heavy division of French group Renault.

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Source: [url=http://www.automotiveworld.com/WCV/content.asp?contentid=59357]Automotive World[/url]