The Japanese truck manufacturer Nissan Diesel has accepted the offer from its largest single shareholder Volvo to sell the remaining shares to the Swedish counterpart, in response to the growing competition in heavy vehicle manufacturing as global environmental regulations tighten.
Nissan Motor Co., the second largest Japanese vehicle manufacturer, has already cut its capital ties with the truck maker that bears its name, in order to focus on producing more profitable lighter vehicles. Swedish Volvo, the second largest truck manufacturer in the world that generates strong profits, has announced that it has set its sights on the company as it considers the Asian market its key source of growth in the future.
"Nissan Diesel has a solid position in Japan and the rest of Asia, where the Volvo Group sees significant growth potential," said Volvo’s CEO, Leif Johansson. Volvo currently holds a 19 percent stake in Nissan Diesel and an additional 27.5 percent of preferred shares.
Nissan Diesel, which holds about a quarter of the Japanese truck market, announced that its board of directors has accepted Volvo’s offer to purchase the remaining ownership stake for 7.5 billion Swedish kronor or one billion US dollars. (H)
