agreement finalized for Volvo's acquisition of shares in Mitsubishi Fuso Truck & Bus Company
agreement finalized for Volvo's acquisition of shares in Mitsubishi Fuso Truck & Bus Company Volvo and Mitsubishi have now signed a contract specifying the conditions for Volvo's acquisition of 19.9 percent of the shares of the Mitsubishi Fuso Truck & Bus Company. In conjunction with the transformation of the truck and bus division into a subsidiary of Mitsubishi Motors, a new share issue will be implemented. At that time, Volvo will provide a capital contribution to Mitsubishi Fuso Truck & Bus Company totaling about SEK 3.2 billion in exchange for newly issued shares corresponding to 19.9 percent of the company's capital and voting rights. It is estimated that this transaction will take place in July , 2001. In addition to the fixed portion of the purchase price, Volvo may also pay an additional amount depending on the profit performance of Mitsubishi Fuso Truck & Bus Company during the years from 2002 through 2005. The agreement also clarifies the separation between MMC's truck and bus business, which is the subject of the MMC/Volvo alliance, and MMC's passenger car and light commercial vehicle business, as to which MMC will be cooperation with DaimlerChrysler. " The cooperation with Mitsubishi on the next generation of medium-heavy trucks is developing well and, with today's agreement regarding the terms for our participation in Mitsubishi Fuso Truck & Bus Company, we are taking another important step in our global strategy for trucks and buses, in which Asia is playing an important role, especially on view of the upturn we see in that part of the world", says Leif Johansson, Volvo's Chief Executive Officer. July 28, 2000 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/07/28/20000728BIT00320/bit0001.doc http://www.bit.se/bitonline/2000/07/28/20000728BIT00320/bit0002.pdf