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Volvo has made an offer to buy Japanese truck manufacturer Nissan Diesel for £546m. The Swedish firm already owns 19% of ND, but sees potential production and marketing synergies and access to Nissan Diesel's 'heavy hybrid' technology.

From the Volvo Group press release:

 

“Nissan Diesel’s products and know-how represent a valuable complement to the Group’s truck business,” says [Volvo CEO] Leif Johansson. “Nissan Diesel holds a solid position in Japan and the rest of Asia where the Volvo Group foresees substantial growth potential. A merger offers both parties even greater possibilities to learn and benefit from each other’s know-how and resources.”“During our joint synergy study, great trust grew between the companies and I believe that the merger is the best alternative for Nissan Diesel’s future,” says Iwao Nakamura, President of Nissan Diesel.

Since Volvo’s first purchase of shares in Nissan Diesel, Volvo’s Deputy CEO Jorma Halonen was appointed Vice Chairman in Nissan Diesel’s Board. Jorma Halonen sees major mutual advantages with an even closer cooperation.

“Nissan Diesel can benefit from the Volvo Group’s resources and know-how, but Volvo can also benefit greatly from Nissan Diesel’s experience of medium-heavy  trucks and its expertise in, for example, hybrid technology,” he says.

The study of co-ordination possibilities carried out jointly by Volvo and Nissan Diesel identified synergies over five years of about €200m (£135m) annually. The major portion of the integration gains is as a result of increased purchasing volumes, but positive effects also arise within product development, engines and drivelines. Other gains arise in that the companies have access to each other’s dealer and service networks, primarily in Asia but also in other parts of the world.