Volvo’s Construction Equipment (CE) unit said on Tuesday it will sell its 70% stake in China’s Shandong Lingong Construction Machinery Co to a fund primarily owned by minority owner Lingong Group for 8 billion Swedish crowns ($837 million).
In a separate statement, Volvo CE said it had agreed to buy engineering consultancy company Swecon’s business operations in Sweden, Germany and the Baltics for 7 billion Swedish crowns ($731.45 million).
“With increasing competition, the need to transform to new technologies as well as strengthening the interaction with customers, we need to re-focus,” Melker Jernberg, head of Volvo CE, said in a statement on the Chinese transaction.
($1 = 9.5583 Swedish crowns)
Reuters
