| Volvo offers $1.07 billion for Nissan Diesel |
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| World Affairs Talk | |
| Tuesday, 01 May 2007 | |
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If the deal gets approved by anti-trust authorities, it would be completed by March 29, said Volvo, the world's second-largest truck maker after DaimlerChrysler AG. “With Volvo as owner, Nissan Diesel gains the resources and the financial stability needed to fully capitalize on the opportunities that a closer cooperation offers to both parties” Volvo Chief Executive Leif Johansson said in a statement after announcement of the deal. Goteborg, Sweden-based Volvo bought a 13 percent stake in Nissan Diesel in March 2006 and upped its holding to 19 percent in September that year. At that time, Volvo said the deal would help balance the company's offerings of heavy trucks and give it broader geographical reach in Asia. Volvo aims at a synergy gain amounting as high as $263 million annually for the next five years, mainly because of increased purchasing volumes, product development and access to each other's dealerships and service networks. Nissan Diesel Motor Co. President Iwao Nakamura expressed support for the bid, saying it will save costs in development and purchasing, including emission-reducing technologies, and present opportunities for efficient investments for long-term growth. “During our joint synergy study, great trust grew between the companies and I believe that the merger is the best alternative for Nissan Diesel's future” Nissan Diesel President Iwao Nakamura said in the statement. Nissan Diesel has about 9,100 employees and is based in Saitama Prefecture, just north of Tokyo. It holds a market share in Japan of about 24 percent in heavy trucks and 15 percent in the medium-heavy segment. Volvo has 83,000 employees and produces vehicles in 18 countries and counting. Share & Bookmark             |
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