Volvo to Sell Military-Vehicle Business Arquus to John Cockerill Defense
By Dominic Chopping
STOCKHOLM--Volvo has signed an option agreement giving it the right to sell its Arquus military vehicle business to John Cockerill Defense, subject to mandatory consultations with staff representatives.
The Swedish truck maker said the consultations are expected to be finalized in the first quarter of 2024.
Arquus manufactures and sells specially designed vehicles to defense forces and employs about 1,200 people in France. In 2022, Arquus represented around 1% of Volvo group revenue.
As a result of the agreement, Volvo said its operating income will be negatively affected by around 900 million Swedish kronor ($87.7 million) in the fourth quarter of 2023.
If the option is exercised, closing of the deal will be subject to governmental approvals and other conditions, it added.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
January 15, 2024 06:41 ET (11:41 GMT)
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