Volvo, Navistar Talk Merger
February 15, 1999
Sweden’s Volvo is talking to Navistar International about a possible buyout, merger or alliance, reports the London-based Financial Times newspaper.
Volvo, which last month agreed to sell its car-making operations to Ford, is now trying to build up its heavy truck operations. Currently the company is said to be meeting with officials from Chicago-based Navistar.
The deal reportedly could be worth at least $3 billion – but talks could lead to the acquisition of only Navistar’s heavy truck operations, or could lead to some sort of alliance. A takeover would more than double Volvo’s share of the North American truck market.
Officials at Volvo Trucks North America and Navistar International refused to comment on the report.
Volvo also is trying to buy rival Swedish truck maker Scania, and owns 13% of its stock.
Paccar, parent company of Kenworth and Peterbilt, also has been rumored to be a candidate for an acquisition bid by Volvo. However, some industry observers believe that the family-owned Paccar, which recently bought the European DAF and Leyland truck companies, is not the most likely candidate.