Volvo buys over Nissan Diesel
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Truck maker Nissan Diesel accepts Volvo buyout
Posted: 21 February 2007 0037 hrs
STOCKHOLM : Japanese truck maker Nissan Diesel accepted a billion-dollar buyout from its largest shareholder Volvo Trucks, the latest merger in the industry as companies prepare for more stringent emissions rules.
Volvo, which owns a 19-percent stake in Nissan Diesel Motor Co. Ltd, proposed 540 yens per share for the remainder of the company, valuing the Japanese group at 135 billion yen (812 million euros, US$1.01 billion).
Nissan Diesel, which controls nearly a quarter of the Japanese truck market, said its board of directors accepted Volvo's offer.
"The two partners can help each other greatly with the very good position of Nissan Diesel in Asia and the very good position of the Volvo group worldwide," Volvo chief executive Leif Johansson told a news conference in Tokyo via satellite.
Nissan Diesel said the deal would allow greater investment in research and development to meet global regulations on vehicle emissions, which are expected to become more costly in the United States, Japan and Europe by 2010.
Volvo's Johansson said the two companies had already discussed cooperating to meet stricter emissions standards.
"Together, with the size of the Volvo powertrain but also with some of the very innovative features of the hybrid technologies that Nissan Diesel has, we have a good opportunity to become a technology leader in the field of fuel efficiency and with that create a much more competitive group," he said.
The same concerns about investment in cleaner technologies also recently drove Germany's MAN group to launch a hostile takeover bid for Swedish truckmaker Scania and Japan's Toyota Motor Corp to buy a stake in truckmaker Isuzu.
"After studying the synergies, we found there were lots of opportunities and potential," said Iwao Nakamura, president and chief executive officer of Nissan Diesel.
"Becoming a 100-percent subsidiary is the best way for our primary goal of growth," he said.
Volvo said the group's executive committee would soon welcome its first Japanese member, and hoped to invite the president of Nissan Diesel to join as well.
In Stockholm, Volvo B shares were up by 1.28 percent to 555 kronor in afternoon trading, while the leading index of Swedish stocks dropped 0.71 percent.
Nissan Diesel shares in Tokyo had a bid-only limit of 523 yen, up from Monday's close of 443 yen, as the bourse starts to delist the soon-to-be subsidiary.
Volvo had proposed a 22-day tender offer starting on Wednesday with an offered price of 540 yen per Nissan Diesel share.
Nissan Diesel said the offer was a "reasonable price" as it represented a 32-percent premium on the company's average price on the Tokyo Stock Exchange over the past three months.
The Swedish company said the acquisition would be financed by a mix of cash and debt.
Nissan Motor Co., Japan's second-largest automaker, has divested the truckmaker which bears its name to focus on more profitable, lighter vehicles.
Volvo has meanwhile concentrated on trucks, after selling its Volvo Cars division to US group Ford in the late 1990s.
In 2001, the Swedish truckmaker took over Renault Trucks, the heavy division of French group Renault which owns 44.4 percent of Nissan.
The same year Volvo also took over US-based Mack Trucks.
Volvo said earlier this month that its net profits soared by 24.5 percent in 2006, although its sales dropped in Asia. - AFP/de
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/259676/1/.html
i wonder does this means next time we can have euro 4 buses of nissians ? -
Cool !
Nissan gonna use bodywork designs of Volvo buses. Chassis of Japan, but bodywork of european..Cool.. Thats what i think. Cuz even the Nissan cabstar looks like Renault oredi. -
wa ha.. maybe we will be seeing nissan DDs on SBST's buses???
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Eh possible leh! I see alot Nissan DD at Thailand. The engine is V8 sia !! Wah...sekali the DD that SBST buy in the future will have a V8 engine?Originally posted by manjieass:wa ha.. maybe we will be seeing nissan DDs on SBST's buses??? 
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Eh possible leh! I see alot Nissan DD at Thailand. The engine is V8 sia !! Wah...sekali the DD that SBST buy in the future will have a V8 engine?Originally posted by manjieass:wa ha.. maybe we will be seeing nissan DDs on SBST's buses??? -
It isn't the first time Volvo is involved in a merger deal. After all, an early deal involved taking over British Leyland in 1994. The B9TL is a direct descendant of the LO2X.
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That means no more crappy buses
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actually Nissan Motors is already controlled by another european automobile Renault..
Nissan was on the verge of collapsing a few years back and this company came to "save" Nissan..
"Latio" isnt even an asian word.. and many nissan cars looks a bit european now
Nissan Diesel, strangely, does not relate to Nissan Motors
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NO MORE LEAF SPRINGS SUSPENSION!!!!!!Originally posted by sbst275:That means no more crappy buses -
Leaf springs will remain as a commonly used suspension, unlikely to phased out soon until air suspension becomes cheaper and as reliable (low maintenance) as leaf springs. Almost all of singapore's heavy duty dump trucks uses leaf springs.Originally posted by Scania N113CRB luver:NO MORE LEAF SPRINGS SUSPENSION!!!!!!
Also, leaf springs are getting more advanced in terms of ride comfort for coaches and buses, look at the inter city coaches for SG-KL and u'll notice many do not use air suspension, but are still as comfortable to ride in. -
Hmm can give some examples of coaches that dont use air suspension? UDs most possibly... But UD coaches i like...Loud engine!!!Originally posted by XiaoTaro:Leaf springs will remain as a commonly used suspension, unlikely to phased out soon until air suspension becomes cheaper and as reliable (low maintenance) as leaf springs. Almost all of singapore's heavy duty dump trucks uses leaf springs.
Also, leaf springs are getting more advanced in terms of ride comfort for coaches and buses, look at the inter city coaches for SG-KL and u'll notice many do not use air suspension, but are still as comfortable to ride in. -
woah...never expected volvo to buy over nissan...l
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lolOriginally posted by simnatic:woah...never expected volvo to buy over nissan...l -
hope to see nissan olympian
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But SMRT might get UDs with the SMRT's Hino bodywork. But then soon , we might be seeing SBST buying Volgren UD single deck & B9 Style UD DD. Hope to see Volvos & Scanias in future for SBST too , especially Scania K114IB or K94IB . Aft all UDs arent bad , is just that their engine sound is too loud , eg. Comfortbus UD ; CB6014A
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Lol some people prefers quiet engine...Maybe u prefer quiet engine? I prefer louder engines, thats why i like the Volgren artics, VSO (altho not engine loud), because the engines are loud!! I love loud engines!Originally posted by swee_heng:But SMRT might get UDs with the SMRT's Hino bodywork. But then soon , we might be seeing SBST buying Volgren UD single deck & B9 Style UD DD. Hope to see Volvos & Scanias in future for SBST too , especially Scania K114IB or K94IB . Aft all UDs arent bad , is just that their engine sound is too loud , eg. Comfortbus UD ; CB6014A -
Hinos? King Longs?Originally posted by Scania N113CRB luver:Hmm can give some examples of coaches that dont use air suspension? UDs most possibly... But UD coaches i like...Loud engine!!! -
King Longs i thot is half air half leaf spring? I thot is front leaf spring, rear air spring? Aiya whatever lah, as long as suspension is good, thats enough, i dont ask for much.Originally posted by XiaoTaro:Hinos? King Longs? -
I want to vomit already...
Nissan DD??? OMG! -
I doubt leh
When Volvo ate up Leyland in the late 80's, everything from Leyland was stopped and only the Olympian survived -
[urlhttp://www.channelnewsasia.com/stories/afp_asiapacific_business/view/259676/1/.html[/url]
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Now Volvo lovers cannot say UD terrible.......
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Can what, these UDs dont have Volvo engine, chassis and so onOriginally posted by Raraken:Now Volvo lovers cannot say UD terrible....... -
Skarly got Volvo derived engine, chassis and so on..........use Volvo techOriginally posted by SBS9806J:Can what, these UDs dont have Volvo engine, chassis and so on