EU Regulators Approve U.S. ArvinMeritor's Proposed Takeover of Volvo Axle Unit

BRUSSELS, Belgium October 4, 2004; The AP reported that European Union antitrust regulators on Monday approved by U.S. vehicle components maker ArvinMeritor Inc.'s proposed takeover of Sweden's Volvo AB axle production unit.

The EU said the deal would not have any significant impact on competitive conditions in the European axle market.

Under the deal, ArvinMeritor will provide the Swedish truck manufacturer with more than 300,000 commercial-vehicle drive axles a year, making the company, based in Troy, Mich., one of Volvo's largest suppliers.

As part of the agreement, some production of non-drive axles at Volvo's Koping, Sweden, plant will shift to ArvinMeritor's Lindesberg, Sweden, facility and to a jointly run factory in St. Priest, France. ArvinMeritor said the French plant will produce 200,000 axles annually.

Volvo, based in Gothenburg, Sweden, is one of the world's largest truck manufacturers. The company sold its car business to Ford Motor Co. in 1999.

ArvinMeritor acquired Volvo's axle facility in Lindesberg in 1998, and in 2002, Volvo sold back its axle business in North America to ArvinMeritor.

The U.S. company serves light vehicle, commercial truck and trailer manufacturers.