AB Volvo and Isuzu Motors Japan have signed a binding agreement for their strategic alliance.
As reported by Reuters, the alliance includes Isuzu buying UD Trucks Volvo for about 20 billion Swedish krones (2.29 billion US dollars).
The final agreement follows a memorandum of understanding between the two companies, which was signed in December last year. The closure itself 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,” said Volvo.
Volvo expects a positive impact of 2 billion Swedish crowns on its operating income from the deal. Meanwhile, its net cash position in industrial operations is seen increasing by around 20 billion Swedish krones.
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