Truckmaker AB Volvo offered to buy Japan's Nissan Diesel for $1.1 billion in a deal to boost its presence in Asia and prepare for tougher emissions standards being introduced in Japan in 2010, The Associated Press
Volvo's offer, which needs regulatory approval, will give it full ownership of Nissan Diesel from the current 19 percent. It highlights Volvo's ambitions in Asia, where the company has lacked a local brand while owning Mack Trucks in the U.S. and Renault Trucks in Europe.
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.
The company is Japan's fourth-largest truck maker, with a market share of about 24 percent in heavy trucks and 15 percent in the medium-heavy segment, according to The Associated Press
Volvo, which sold its car division to U.S.-based Ford Motor Co. in 1999, said that including debt the total cost of the acquisition would be $2 billion.
Nissan Diesel shares jumped 18 percent on the announcement in Tokyo, while Volvo shares closed up 1.5 percent in Stockholm.
If approved by antitrust authorities, the deal would be completed by March 29, Volvo said. Nissan Diesel will retain its name and that management will stay Japanese.