Deal Approved, Volvo Transfers Stock to Renault

January 10, 2001 1:20 PM, EST

AB Volvo (VOLVY) transferred some 41 million shares of its stock to Renault SA (13190-PAR) Jan. 2 as payment for 100% of the shares in the French company’s truck business.

The action was taken in the wake of last week’s approval by the European Union and the Department of Justice of the Volvo-Renault transaction (12-26, p.1). The stock represents 10% of the share capital and voting rights in AB Volvo.

The Gothenburg, Sweden-based company — which currently owns none of its own shares, according to Bloomberg News — is to acquire an additional 5% of outstanding Volvo shares as the final payment to Renault.

The acquisition, announced last April, will almost double Volvo’s business volume, with Volvo’s U.S. subsidiary Volvo Trucks North America combining with Mack Trucks to claim just more than 30% of the market for heavy trucks in the United States.

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