Volvo Group now owns 96 percent of Nissan Diesel after the Swedish company’s acceptance period offer for the latter expired on the 23rd of this month. The 96 percent voting power of Volvo on Nissan Diesel surpassed the Japanese government’s requirement for them to take over the company completely.
Volvo Group is now ready to purchase the remaining shares of Nissan Diesel to completely make Nissan Diesel a part of the Volvo Group. The approximately 96 percent ownership of Volvo Group of Nissan Diesel is because of the 294,585,705 shares that the former received after the acceptance period expired. It includes the 19 percent that Volvo already controlled even before the offer was made.
Volvo’s Chief Executive Officer Leif Johansson has this to say about the purchase of Nissan Diesel: “It is pleasing that we received such a level of acceptance. We foresee major mutual benefits for the Volvo Group and Nissan Diesel with this transaction and it is highly satisfying that owners in Nissan Diesel share this view.”
After acquiring more than two thirds of the company, the Volvo Group is now in the process of acquiring the rest of the company from other investors. Meanwhile, the Volvo Group is also planning to take Nissan Diesel out of the trading floor of the Tokyo Stock Exchange. The remaining stakes are expected to be bought by Volvo Group by the end of September this year.
With total acquisition of the company, Volvo will be closing the gap between them and the largest truck manufacturer in the world which is DaimlerChrysler. They will also be responsible for the production of Nissan Diesel parts like the Nissan exhaust manifolds and other special auto parts made just for Nissan vehicles.
The Volvo Group will be paying 7.4 billion Swedish kronor and is expected to make payments on or before the 29th of this month. The completion of the purchase will need the approval of anti-trust authorities based in the United States and in South Africa. The Volvo Group has already secured approval from the U.S. institution and authorities while approval from the South African units is expected to be given by the end of May this year.
The Volvo Group needs to wait for the approval from authorities in South Africa before they can take control of Nissan Diesel facilities in the country. Aside from those matters, the Volvo Group considers that the purchase of Nissan Diesel is already in the books.
Nissan Diesel will be a part of the Truck segment of the Volvo Group.
About the Author
Ryan Thomas is a native of Denver, Colorado. He grew up in a family of car afficionados. He now resides in Detroit where he owns a service shop and works part time as a consultant for a local automotive magazine.