Volvo Trucks Corporation cancelled the acquisition of JMC Heavy Duty Vehicle Co., Ltd. from Jiangling Motors Corporation, Ltd..
May 11, 2023
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Volvo Trucks Corporation agreed to acquire JMC Heavy Duty Vehicle Co., Ltd. from Jiangling Motors Corporation, Ltd. (SZSE:000550) for CNY 800 million on August 23, 2021. As per article on on August 24, 2021, the transaction price is approximately CNY 780 million. After the completion of the equity transfer and delivery, Jiangling Motors no longer owns the equity of Jiangling Heavy Truck, and Jiangling Heavy Truck will no longer be included in Jiangling Motors. The acquired business includes a manufacturing site in China's northern city of Taiyuan. The objective is to start production of the new heavy-duty Volvo FH, Volvo FM and Volvo FMX trucks in Taiyuan for customers in China from the end of 2022. The transaction is subject to customary closing conditions, including regulatory approvals and approval of China's anti-monopoly review. Board of Directors of Jiangling Motors Corporation approved the transaction on August 24, 2021. The plant will have an annual production capacity of 15,000 trucks in a few years, with the potential to further increase capacity.
Volvo Trucks Corporation cancelled the acquisition of JMC Heavy Duty Vehicle Co., Ltd. from Jiangling Motors Corporation, Ltd. (SZSE:000550) on May 12, 2023.
Jiangling Motors Corporation, Ltd. is a China-based company principally engaged in the production and sale of commercial vehicles, sport utility vehicles (SUVs) and related components. The Companyâs main products include JMC series light trucks, heavy duty trucks, pickups, Yusheng SUVs, Ford-brand SUVs and Ford-brand commercial vehicles, among others. The Company is also involved in the production and sale of engines, castings and other components. The Company distributes its products mainly in domestic market.