magazine top

AB Volvo has finalized the sale of Volvo Aero to the global engineering company,
GKN, for the equivalent of SEK 6.9 billion on a debt-free basis. The transaction
was finalized after receiving approval from the appropriate authorities.
The sale is expected to generate a positive nonrecurring effect on operating
income of SEK 300 M in the “Corporate functions and other” segment in the fourth
quarter, net after reversed depreciations. Financial net debt will be reduced by
approximately SEK 5 billion in the fourth quarter.

As a step in further streamlining the Volvo Group toward commercial vehicles, AB
Volvo initiated a process of assessing the options of identifying a new owner
for Volvo Aero in late November 2011. The company selected GKN plc, a global
engineering business that serves the automotive, aerospace and land systems
markets. It has operations in more than 30 countries and around 45,000 employees
in subsidiaries and joint ventures.

Follow Us

Most Read