Volvo CE is selling its 70-percent ownership in Chinese Shandong Lingong Construction Machinery (SDLG) for 8 billion kronor, writes the Volvo Group in a press release. The transaction is estimated – with reservation for any currency fluctuations – to give a positive effect of 1 billion kronor on AB Volvo's operating result when it is completed.
The buyer of Volvo CE's SDLG shares is a fund owned by Lingong Group (LGG), which is a minority owner in SDLG prior to the transaction.
”The collaboration with SDLG has been successful, but for strategic reasons, Volvo and LGG now believe that it would be mutually beneficial to follow independent business strategies”, writes the Volvo Group in the press release.
At the same time, Volvo CE has made an agreement with Lantmännen to buy the dealer Swecon, which sells machines in Sweden, the Baltic countries, and most of Germany.
Swecon's turnover amounted to 10 billion kronor last year.
”The transaction includes Swecon's entire business in all countries: that is, sales of products and services, rental operations, service on the aftermarket, and customer support, as well as offices, workshops, and 1,400 employees”, writes Lantmännen in a press release.
The transaction must be approved by the relevant authorities and the deal is expected to be able to be completed during the second half of 2025, according to Lantmännen.
