More Nissan For Volvo
Posted on September 25, 2006
Volvo said it will pay $553.2 million to increase its ownership share of Japan’s Nissan Diesel Motor Co. The move, which will increase Volvo’s stake in Nissan from 33.5% to 46.5%, come as the truckmaker is being pressured by some shareholders to increase returns to shareholders. The company’s position is that it wants to complete acquisitions before raising shareholder payouts and cited the Nissan Diesel acquisition as part of that strategy.
As part of the Nissan acquisition. Volvo also said it was buying the remaining 6% in Nissan Diesel, the smallest of Japan's four truckmakers which is owned by Nissan Motor Co., for approximately $68 million. Volvo, which could get a link to China through Nissan Diesel's local joint venture Dongfeng Motor Corp., is also negotiating for a stake in Indian truck maker Ashok Leyland Ltd., according to the Times Of India. The company declined to comment on the report.