PARIS (April 10, 2000) — Renault SA, the French parent of Mack Trucks, is negotiating to merge its truck business with Volvo AB, according to the Paris daily La Tribune and Britain’s Financial Times.
The deal would involve trading Renault’s truck unit for part of Volvo’s capital, which would make Renault the main shareholder of Volvo, the papers said. The reports said an agreement could be announced before Volvo’s shareholders meeting on April 26.
The two companies have refused to comment on the reports, which cited unidentified sources.
Volvo has been searching for a new truck partner since its $6.9 billion US takeover of Scania AB was rejected last month by European antitrust regulators.
Renault and Volvo attempted to merge in 1993, but the deal fell apart when Volvo shareholders objected to having a minority role. That would have been a full merger of both companies’ car and truck units. Volvo has since sold its carmaking business to Ford Motor Co.
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