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Volvo eyes sale of Arquus to John Cockerill, takes $87 million hit

Published 15/01/2024, 11:34
Updated 15/01/2024, 11:56
© Reuters. FILE PHOTO: Employees work on the assembly line of the Caesar self-propelled howitzers at the Arquus military vehicle production plant, a unit of Volvo AB, in Limoges, France, April 6, 2023. REUTERS/Benoit Tessier/File Photo

(Reuters) -Sweden's Volvo said on Monday it had signed an option agreement to sell its Arquus defence unit to John Cockerill Defense, and would book a fourth-quarter operating loss from the deal of some 900 million Swedish crowns ($87.44 million).

Volvo expected consultations to become finalised during the first quarter of this year. In 2022, Arquus, with about 1,200 employees in France, represented around 1% of Volvo Group revenues, it said in a statement.

"This prospective acquisition contributes to strengthening cooperation between France and Belgium in a strategic sector," said Belgium's John Cockerill in a statement.

($1 = 10.2926 Swedish crowns)

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