Swedish truck maker AB Volvo yesterday made a 7.5 billion krona (US$1.07 billion) offer to take over Japan's Nissan Diesel in a strategic move aimed at gaining a solid presence in Asia.
The move, which would raise Volvo's stake from 19 percent to full ownership of Nissan Diesel, highlights the company's ambitions in Asia's burgeoning truck market, where Volvo has lacked a local brand while owning Mack Trucks in the US and Renault Trucks in Europe.
Volvo is the world's second-largest truck maker after DaimlerChrysler AG of Germany, while Nissan Diesel is Japan's fourth-largest truck maker.
In a statement, Nissan Diesel Motor Co's board expressed support for the tender offer, saying the move would be positive for the company's troubled books, as well as for cost-savings in development and purchasing.
The ¥540 (US$4.52) per share cash offer represented a premium of 32 percent based on the Japanese company's average share price during the past three months, both sides said.
Nissan Diesel shares jumped 18 percent in Tokyo trading to ¥523 by midday, up from its Monday's close at ¥443. Volvo shares finished up 0.18 percent at Kr549 (US$78.11) in Stockholm.
"With Volvo as owner, Nissan Diesel gains the resources and the financial stability needed to fully capitalize on the opportunities that a closer cooperation offers to both parties," Volvo chief executive Leif Johansson said in a statement.
If approved by antitrust authorities, the deal would be completed by March 29, Volvo said.
Volvo, based in Goteborg, Sweden, became the top shareholder in Nissan in March last year, buying a 13 percent stake in Nissan Diesel from Tokyo-based Nissan Motor Co, and upped its holding to 19 percent in September.
At that time, Volvo said the deal would help balance the company's offerings of heavy trucks and give it broader geographical reach in Asia. Volvo sold its car division to US-based Ford Motor Co in 1999.
Nissan Motor, Japan's No. 3 automaker, which is allied with Renault SA of France, sold Nissan Diesel to better concentrate on its passenger car business.
Volvo yesterday said a joint study identified gains amounting to 200 million euros (US$263 million) annually for the next five years, mainly as a result of increased purchasing volumes, but also from product development and access to each other's dealerships and service networks.
"During our joint synergy study, great trust grew between the companies and I believe that the merger is the best alternative for Nissan Diesel's future," Nissan Diesel president Iwao Nakamura said in the statement.
If the takeover offer is approved, Volvo said it will have paid a total of 13 billion krona for Nissan Diesel, which holds a market share in Japan of about 24 percent in heavy trucks and 15 percent in the medium-heavy segment.
Volvo has 83,000 employees, while Nissan Diesel has about 9,100 employees.
Three experts in the high technology industry have said that US President Donald Trump’s pledge to impose higher tariffs on Taiwanese semiconductors is part of an effort to force Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to the negotiating table. In a speech to Republicans on Jan. 27, Trump said he intends to impose tariffs on Taiwan to bring chip production to the US. “The incentive is going to be they’re not going to want to pay a 25, 50 or even a 100 percent tax,” he said. Darson Chiu (邱達生), an economics professor at Taichung-based Tunghai University and director-general of
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective