Truckmaker AB Volvo VOLVb.ST and Japan’s Isuzu Motors 7202.T have inked a binding agreement for their previously announced strategic alliance, which includes Isuzu buying Volvo’s UD Trucks for around 20 billion Swedish crowns ($2.29 billion).
The final agreement follow a memorandum of understanding between the two companies, signed in December last year, and closing is expected during the first half of 2021, Volvo said in a statement.
“The transaction is subject to certain conditions, including approval from regulatory authorities,” Volvo said.
Volvo expects a positive 2 billion crown impact on its operating income from the deal, while its net cash position in the industrial operation is seen increasing by some 20 billion crowns.
