22 February 2007
Japan’s Nissan Diesel has accepted a buyout offer from AB Volvo for about $1.1 billion. Volvo was already the largest stockholder of Nissan Diesel, holding 19% of the company’s stock.
Volvo has made a public offer to pay 540 yen in cash per share. The total value of the deal amounts to 135 billion yen (SEK 7.5 billion, 812 million euro, or US$1.1 billion). The offer represents a 32% premium on Nissan Diesel’s average price on the Tokyo Stock Exchange over the past three months.
“Nissan Diesel holds a solid position in Japan and the rest of Asia where the Volvo Group foresees substantial growth potential,” said Volvo CEO Leif Johansson. The merger will also allow greater investment in R&D to meet future vehicle emission standards, according to Nissan Diesel.
In 2005, Nissan Diesel sold approximately 42,000 trucks and buses. In Japan, Nissan Diesel holds a market share of about 24% in heavy trucks and 15% in the medium-heavy segment. Sales in 2005 amounted to about SEK 32.5 billion ($4.6 billion). The company has 8,900 employees.
In 2006, the Volvo Group’s sales were approximately SEK 248.1 billion ($36.4 billion). The Volvo Group is Europe’s largest and the world’s second largest manufacturer of heavy trucks. Volvo also manufactures buses, construction equipment, drive systems for marine and industrial applications, as well as components for aircraft engines. The Volvo Group is currently divided into eight business areas—Volvo Trucks, Renault Trucks, Mack Trucks, Volvo Buses, Volvo Construction Equipment, Volvo Penta, Volvo Aero, and Volvo Financial Services—and employs about 83,000 in 18 countries.