Volvo 2002 Annual Report Download - page 39

Parent Company holdings of shares in subsidiaries as of December
31, 2002 are shown in AB Volvo’s holding of shares on pages
75–77. Significant acquisitions, formations and divestments within
the Group are listed below.
Volvo Aero Services LP
During 2002 VNA Holding Inc acquired an additional 9% of the
shares in Volvo Aero Services LP (previously The AGES Group ALP).
Thereafter, Volvo owns 95% of Volvo Aero Services LP.
Prévost Holding BV
On October 1, 2001 Volvo Buses divested 1% of Prévost Holding
BV, a Canadian and North American bus manufacturer, to Henlys
Group Plc. Thereafter Volvo and Henlys Group Plc own 50% of
Prévost Holding BV each. Thus, effective on October 1, 2001, Prévost
Holding BV is a joint venture and reported in the Volvo Group accounts
in accordance with the proportionate consolidation method.
Acrivia AB (former OmniNova Technology AB)
In April 2001, Volvo Buses acquired 65% of Acrivia AB, an engineer-
ing company that develops production processes for buses and pro-
duce frames for the new TX platform, from TWR Sweden AB.
Thereafter, Volvo Buses owns 100% of Acrivia AB.
Low Cab-Over-Engine (LCOE)
On July 27, 2001 Volvo Trucks North America agreed to sell its LCOE
business to Grand Vehicle Works Holdings, LLC. By divesting its
LCOE operations, Volvo met the condition imposed by U.S. Depart-
ment of Justice for approval of its acquisition of Mack and Renault V.I.
Volvia
On February 8, 2001, Volvo’s wholly owned subsidiary, Volvia reach-
ed an agreement covering the divestment of its insurance oper-
ations. The buyer is the If insurance company. The purchase price
for the operations was 562.
Note 2Acquisitions and divestments of shares in subsidiaries
Renault V.I. and Mack
On January 2, 2001, AB Volvo’s acquisition of Renault’s truck oper-
ations, Mack and Renault V.I., became effective. Under the terms of
acquisition AB Volvo acquired all the shares of Mack and Renault V.I.
in exchange for 15% of the shares in AB Volvo. The purchase price
for the shares was set at SEK 10.7 billion, based on the Volvo share
price on the acquisition date. Goodwill amounting to SEK 8.4 billion
that arose in connection with the acquisition is being amortized over
20 years. In connection with the acquisition, Renault V.I. Finance was
acquired for about FRF 154 M.
Eddo Restauranger AB
In December 2000, AB Volvo and Volvo Car Corporation divested in
total 51% of the Eddo Restauranger restaurant chain to Amica AB, a
company within the Fazer Group. Eddo was 55% owned by AB Volvo
and 45% by Volvo Car Corporation. Amica AB acquired the shares in
proportion to earlier holdings by AB Volvo and Volvo Car Corporation.
AB Volvo sold its remaining 30% holding in Eddo to Amica AB in
September 2002.
Duffields of East Anglia Ltd
In July 2000, Volvo Trucks acquired Duffields of East Anglia Ltd, a
company that has been a Volvo dealer since 1969. Duffields is rep-
resented in the east of England where they operate from ten own
dealerships, manage two customer workshops and are responsible
for a small independent dealer.
Volvo (Southern Africa) (Pty) Ltd
In February 2000, the new wholly-owned company Volvo (Southern
Africa) (Pty) Ltd acquired the assets of the former distributor in
South Africa for approximately USD 10 million, including dealerships
in South Africa and an assembly plant for trucks and bus chassis in
Botswana. The company will run operations within the truck, bus,
construction equipment and marine and industrial engines sectors.
Truck Engine Parts Division
In February 2000, Volvo Aero’s Truck Engine Parts Division (TEPD)
was taken over by the Finnveden engineering group. TEPD produces
components for trucks.