TOKYO, Dec 18 (Reuters) - Japan’s Isuzu Motors and Sweden’s Volvo AB said on Wednesday they had agreed to form a strategic alliance in commercial vehicles that will include the sale of Volvo’s subsidiary UD Trucks to Isuzu.
Isuzu and Volvo said in a statement they would explore opportunities for more collaboration in commercial vehicle businesses across global regions and products, such as light- and medium-duty trucks.
Volvo said the enterprise value for UD Trucks was 250 billion yen ($2.3 billion). It said the transaction would have a positive impact on the Volvo Group’s operating income of about SEK 2 billion ($208 million) and increase its net cash position by SEK 22 billion. ($1 = 108.6400 yen) ($1 = 9.6261 Swedish crowns) (Reporting by Chris Gallagher and Naomi Tajitsu; Editing by Muralikumar Anantharaman)