Volvo CE acquires Swecon, divests shares of Chinese OEM
Swecon generated $1.1B in revenue in 2024
Global manufacturer Volvo Construction Equipment acquired fellow Swedish OEM Swecon and divested its shares of Chinese OEM Shandong Lingong Construction Machinery as Volvo refocuses its operations.
Volvo Construction Equipment agreed to acquire Swecon’s business operations in Sweden, Germany and the Baltic states from Lantmannen for 7 billion Swedish krona ($735 million), according to a Volvo release today. The deal includes sales, rentals, aftermarket services, facilities and 1,400 employees.
The acquisition strengthens the company’s retail footprint in key European markets, including Germany — Europe’s largest construction equipment market — and Sweden, its home base, according to the release. With this move, Volvo CE will reinforce retail as a core component of its strategy.
Swecon generated $1.1 billion in revenue in 2024.
The company expects the deal to close in the second half of 2025.
SDLG divestiture
Meanwhile, Volvo CE also agreed to sell its 70% stake in China-based Shandong Lingong Construction Machinery (SDLG) to a fund predominantly owned by Lingong Group, minority shareholder of SDLG, for $836.6 million, according to another release today. The transaction, also expected to close in the second half of 2025, is projected to generate a $105 million increase in Volvo CE’s operating income but also carry a $167.9 million negative tax impact.
Following the sale, the company will concentrate on premium Volvo-branded products and services for targeted segments in China, including mining, quarry and aggregates and heavy infrastructure, according to the release. The company plans to expand its use of China as a key production and development hub.
Volvo shares (OTC: VLVLY) were at $27.49 as of market close, down 2.19% or 59 cents from market open. Volvo has a market capitalization of $54.4 billion.
Editor’s note: All figures have been converted to U.S. dollars.
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