The European Commission has now completed its review of Volvo's proposed aquisition of Renault VI/Mack, and has given the transaction its approval, subject to a number of concessions.  

The concessions to which Volvo and Renault have agreed are as follows:

AB Volvo will divest its shareholding in Scania AB within a time period of up to three years following approval of the transaction by the U.S. Department of Justice. 

Renault VI will divest its 50% shareholding in RS Hansa Auto Oy within a time period of up to one year following approval of the transaction by the U.S. Department of Justice. Existing commercial arrangements between Renault VI and Sisu, the Finnish truck manufacturer which holds the remaining 50% shareholding in RS Hansa Auto Oy, will continue so that Sisu's continued operation will not be negatively affected. 

The Irisbus joint venture between Renault and Iveco will be rescinded within a two year period. This bus business is not included in the transaction. 

"We are pleased that the EU authorities have given their approval without a further investigation, and with reasonable concessions. The divestiture of our Scania shareholding is a question of the right price, and my assessment is that this issue will be resolved well before the EU's time limit runs out ", said Volvo's CEO, Leif Johansson. 

The decision of the EU competition authority is an important step in Volvo's gaining the necessary approvals for the aquisition of Renault VI/Mack. The transaction will be completed after receipt of approval from i.a. the U.S. Department of Justice. 

(September 1, 2000)