Volvo Group has signed an option agreement to divest Arquus

Rhea-AI Summary

Volvo Group has signed an option agreement with John Cockerill Defense to sell Arquus after staff consultations, impacting operating income by approximately SEK 900 M in Q4 2023.

Positive

• None.

Negative

• The negative impact of approximately SEK 900 M on Volvo Group's operating income in Q4 2023 due to the option agreement with John Cockerill Defense.

GÖTEBORG, Sweden, Jan. 15, 2024 /PRNewswire/ -- Volvo Group has signed an option agreement with John Cockerill Defense which gives the Volvo Group the right to sell Arquus after mandatory consultations with staff representative bodies. The consultations are expected to be finalized in Q1 2024. As a result of the option agreement, the Volvo Group's operating income will be negatively impacted by approximately SEK 900 M in the fourth quarter of 2023.

Arquus manufactures and sells specially designed vehicles to defense forces and employs about 1,200 employees in France. In 2022, Arquus represented approximately 1 % of Volvo Group revenues.

The negative earnings effect will be reported in the segment Group Functions & Other and will be excluded from adjusted operating income.

If the option is exercised, closing of the divestment will be subject to governmental approvals and other conditions.

January 15, 2024

Journalists wanting further information, please contact:
Claes Eliasson, Head of Media Relations
+46 73 553 7229
press@volvo.com

For more information, please visit volvogroup.com  For frequent updates, follow us on X: @volvogroup 

The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2022, net sales amounted to SEK 473 billion (EUR 45 billion). Volvo shares are listed on Nasdaq Stockholm.

The following files are available for download:

https://mb.cision.com/Main/39/3909464/2539516.pdf	Volvo Group has signed an option agreement to divest Arquus
https://news.cision.com/ab-volvo/i/volvogroup2-1860x1050,c3257478	VolvoGroup2 1860x1050

 

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SOURCE AB Volvo

FAQ

What is the option agreement signed by Volvo Group with John Cockerill Defense?

Volvo Group has signed an option agreement with John Cockerill Defense to sell Arquus after staff consultations.

How will the option agreement impact Volvo Group's operating income?

The option agreement will negatively impact Volvo Group's operating income by approximately SEK 900 M in Q4 2023.

What does Arquus manufacture and sell?

Arquus manufactures and sells specially designed vehicles to defense forces.