Isuzu completes UD Trucks acquisition

Isuzu Motors has completed the transaction to acquire Japan-based UD Trucks (formerly long known as Nissan Diesel) from the Volvo Group for approximately USD 2.2 billion. The transaction, estimated to have a positive impact on the Volvo Group’s operating income in the second quarter 2021 of close to USD 230 million, includes the creation of a 20 year strategic alliance by the two OEMs with commercial vehicles, the completion of which becomes operation after the completion of the acquisition formalities. Said to have increased the Volvo Group’s net cash position by approximately USD 2.2 billion, the acquisition of UD trucks by Isuzu is also about an entry into the next phase of deriving potential synergies in areas that will encompass formation of a technology partnership. The partnership would leverage the parties’ complementary areas of expertise within both well-known and new technologies and creating a larger volume base to support investments for technology. Exploring further opportunities for even broader and deeper collaboration within the commercial vehicle businesses across geographical areas and product lines for future urban logistics solutions, the two are poised to explore cooperation in the areas of purchasing and logistics, leveraging common technology, as well as the geographical footprint complementarity and volume expansion through a joint alliance office with facilities both in Japan and Sweden.