Volvo Group signs option agreement to divest Arquus
17 January 2024
Volvo Group has signed an option agreement with John Cockerill Defense, which gives the Volvo Group the right to sell French military vehicle maker Arquus after mandatory consultations with staff representative bodies. The consultations are expected to be finalized in Q1 2024. The amount of the agreement was not disclosed.
Arquus manufactures and sells specially designed vehicles to defense forces and employs about 1,200 employees in France. In 2022, the business represented approximately 1% of Volvo Group revenues.
According to reports, the acquisition of Arquus would more than double John Cockerill’s defense business.
As a result of the option agreement, the Volvo Group’s operating income would be negatively impacted by approximately SEK 900 M (USD $87 million) in the fourth quarter of 2023.
If the option is exercised, closing of the divestment will be subject to governmental approvals and other conditions.
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