Volvo of Sweden announced on February 19 that it plans to acquire Japan’s Nissan Diesel Engine Company for US$1.09 billion. At present, Volvo already owns 19% of the Nissan Diesel Engine Company.

In a statement, Volvo CEO Leif Johansson said that if Volvo is allowed to enter the company, Nissan Diesel will receive the necessary resources and financial stability to fully explore the benefits of this cooperation.

According to the estimates of both companies, the merger will create approximately 263 million U.S. dollars in revenue for the two companies each year.

Volvo's purchase price is $4.52 per share, which is 32% higher than Nissan Diesel's average share price over the past three months.

Volvo said that the merger transaction is expected to be completed by March 29, with the approval of their respective regulatory agencies.



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