Volvo Decides Not to Sell Government Sales Operation

By Adam Clark Features Dow Jones Newswires

Volvo AB (VOLV-B.SK) said Tuesday that it has decided to abandon the planned divestment of its government sales unit, saying the offers it has received do not reflect its value.

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The Swedish truck maker said the operation has a strong order book and accounts for 1.5% of its total sales. The business has 1,300 employees, the majority in France, and sells specially designed vehicles to governments, the defense industry and aid organizations.

Shares in Stockholm closed down 1.70 kronor, or 1.1%, at 153.20 kronor on Tuesday.

Write to Adam Clark at adam.clark@dowjones.com

(END) Dow Jones Newswires

October 17, 2017 12:44 ET (16:44 GMT)