Volvo completes Nissan Diesel purchase

Swedish truck maker Volvo has successfully acquired Japan's Nissan Diesel, the companies said Saturday, the latest merger in the industry as companies prepare for more stringent emissions rules.

In a friendly takeover bid Volvo received roughly 96 percent of the shares outstanding in truck maker Nissan Diesel Motor Co. Ltd.

Nissan Diesel controls nearly a quarter of the Japanese truck market.

“It is pleasing that we received such a level of acceptance,” Volvo’s chief executive Leif Johansson said in a statement. “We foresee major mutual benefits for the Volvo Group and Nissan Diesel with this transaction and it is highly satisfying that owners in Nissan Diesel share this view.”

Nissan Diesel has said the deal would allow greater investment in research and development to meet global regulations on vehicle emissions, which are expected to become more costly in the United States, Japan and Europe by 2010.

Volvo, which previously owned a 19 percent stake in Nissan Diesel, had proposed 540 yen per share for the remainder of the company, valuing the Japanese group at 135 billion yen ($1.01 billion dollars).

Volvo has concentrated on trucks after selling its Volvo Cars division to US group Ford in the late 1990s.

In 2001, the Swedish truck maker took over Renault Trucks, the heavy division of French group Renault.