Truck maker Volvo AB is working with investment bank Rothschild & Co. to sell its defense unit, according to people familiar with the matter.
The sale could attract interest from companies including BAE Systems, General Dynamics Corp. and CMI Group, the people said, asking not to be identified as the details aren’t public. Tank maker KNDS also plans to bid, Co-CEO Frank Haun told Bloomberg News last month.
Volvo said in November it wants to divest the division, which generates about 1.5% of group revenue and has about 1,300 employees, mostly in France. The unit sells defense, security and emergency-service vehicles under the Volvo, Renault and Mack brands as well as the Panhard and ACMAT businesses.
Representatives for Volvo, Rothschild, BAE and General Dynamics declined to comment. CMI didn’t immediately respond to a request.
Cevian Capital AB, one of Volvo’s largest shareholders, has been pushing the Gothenburg, Sweden-based manufacturer to focus on making trucks and to simplify its “extreme conglomerate” structure by divesting some businesses.