Justice Department Approves Volvo’s Renault/Mack Purchase

December 27, 2000 12:00 PM, EST

The Department of Justice last week approved Volvo AB's (VOLVY) bid to become the world’s second-largest truck maker by acquiring French truck maker Renault Vehicles Industriels — which includes Mack Trucks — if Volvo agrees to sell off part of its existing business.

Volvo signed a consent decree agreeing to sell off its North American Class 8 low-cab-over-engine truck business to avoid a monopoly in this truck segment in exchange for DOJ approval of the $1.5 billion deal.

The Dec. 18 agreement requires approval by the U.S. District Court in Washington, D.C. Tom Clifford, a vice president with Volvo Group in New York, said that since Volvo, Renault and DOJ have all agreed to the terms of the consent decree, the court’s final approval is a formality.

Clifford said the final merger agreement should be sealed by Dec. 31.

For the full story, see the Dec. 25 print edition of Transport Topics. Subscribe today.