Volvo 2006 Annual Report Download - page 50

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Cooperations and acquisitions
AB Volvo became major
shareholder in Nissan Diesel
On February 20, 2007,
Volvo made a public
offer to acquire the
Japanese truck man-
ufacturer Nissan
Diesel. The offer,
which is supported by Nissan Diesel’s Board of
Directors, means that Volvo offers JPY 540 in
cash per share and the total value of Volvo’s
offer amounts to SEK 7.5 billion. Volvo already
owns a 19% holding in Nissan Diesel and pref-
erence shares which can be converted to an
additional 27.5%, after full dilution.
Volvo’s offer for Nissan Diesel represents a
premium of 32% based on the average prices
during the past three months. The offer is open
through March 23 and is not conditional upon a
lowest level of acceptance, but is dependent on
the necessary approvals from the anti-trust
authorities. Volvo anticipates that payment can
be made for acquired shares on or about March
29, 2007. If the offer for Nissan Diesel is imple-
mented, Volvo will have paid a total of SEK 13
billion for all shares, corresponding to JPY 469
per share.
In 2005, Nissan Diesel sold approximately
42,000 trucks and buses. In Japan, Nissan Diesel
holds a market share of about 24% in heavy
trucks and 15% in the medium-heavy segment.
“Nissan Diesel’s products and know-how
represent a valuable complement to the
Group’s truck business. Nissan Diesel
holds a solid position in Japan and the rest
of Asia where the Volvo Group foresees
substantial growth potential.”
Leif Johansson
Significant eventsThe Volvo Group 2006
The year 2006 was eventful, with extensive
product launches and major changes in the
industrial system, particularly toward the end
of the year. Despite this, we posted the best
year in history, in terms of sales and earnings.
Net sales1, SEK billion
05
231.2
06
248.1
03
174.8
02
177.1
04
202.2
Operating income1,
SEK billion
05
18.2
06
22.1
03
2.5
02
2.8
04
14.7 2
In the Board of Directors’ Report through
page 85, Financial Services is reported in
accordance with the equity method.
1 As from 2004 figures are reported in accordance with IFRS. Previous
years are reported in accordance with the then prevailing Swedish GAAP.
See note 1 and 3.
2 Excluding adjustment of goodwill.
Board of Directors’ Report
46 Board of Directors’ Report 2006