Truckmaker AB Volvo and Japan’s Isuzu have inked a requisite agreement for their previously announced strategic alliance, including Isuzu buying Volvo’s UD Trucks for around 20 billion Swedish crowns (1.8 billion pounds).
The final agreement follows a memorandum of understanding between the two companies, signed in December last year. Closing is expected during the first half of 2021, Volvo said in a statement.
“The transaction is subject to certain conditions, including approval from regulatory authorities,” Volvo said.
Volvo expects a positive 2 billion crown impact on its operating income from the deal, while its net cash position in the industrial operation is seen increasing by some 20 billion crowns.
