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1 October 2012
AB Volvo has finalized the sale of Volvo Aero.

AB Volvo has finalized the sale of Volvo Aero to the global engineering
company, GKN, for the equivalent of SEK 6.9 billion on a debt-free
basis. The transaction was finalized after receiving approval from the
appropriate authorities.
(Press release from Volvo. 2012-10-01)

The sale is expected to generate a positive nonrecurring effect on
operating income of SEK 300 M in the "Corporate functions and other"
segment in the fourth quarter, net after reversed depreciations.
Financial net debt will be reduced by approximately SEK 5 billion in the
fourth quarter.

As a step in further streamlining the Volvo Group toward commercial
vehicles, AB Volvo initiated a process of assessing the options of
identifying a new owner for Volvo Aero in late November 2011. The
company selected GKN plc, a global engineering business that serves the
automotive, aerospace and land systems markets. It has operations in
more than 30 countries and around 45,000 employees in subsidiaries and
joint ventures.
Updated 01/10/2012
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