Renault is divesting its remaining stake in Camiones Volvo

Only 6.5% of the Volvo Trucks shareholding was what Renault still held, after the company of the diamond became the largest shareholder of the Volvo truck division in 2001. The days when Volvo also acquired the American brand Mack are long gone, although over the years the French have suffered the most.

And so Renault will have to dispose of its 6.5% stake, the percentage it still held in the truck division of the Swedish brand. The sale is simply to plug some gaps in the financial integrity of Renault, which has not been helped by the European economy in recent times.

The transaction would bring the Regie around 1,480 million euros, although the exact figures are not yet known. These funds will be used to “reduce the company’s debt and for investments in France, China and Russia”. It is to be expected that the brand’s presence in Russia and China will be boosted by the investment being planned, such as the planned purchase of a stake in the Russian manufacturer AvtoVAZ.

The Renault Group is no longer a shareholder in Volvo, except for the link between Volvo and the Renault truck division, which will continue as before.

Source | Reuters