Isuzu Motors Limited (TSE:7202) entered into a memorandum of understanding to acquire UD Trucks Corporation from AB Volvo (publ) (OM:VOLV B) for JPY 75 billion on December 18, 2019. Signing of binding agreements is expected by mid 2020. Isuzu Motors Limited (TSE:7202) signed a binding agreement to acquire UD Trucks Corporation from AB Volvo (publ) (OM:VOLV B) on October 30, 2020. Isuzu Motors Limited will pay an estimated amount of JPY 60 billion for the common stock and an additional amount up to JPY 15 billion is to be paid subject to the performance of UD Trucks during the years 2021-2023. The final amount of the consideration will be decided based on the Subsidiary's financial results at the time of completion of the share acquisition. The consideration will be financed mainly by bank borrowing. UD Trucks Corporation has revenues totaling JPY 280 billion (SEK 24 billion) in 2018. The transaction will be subject to regulatory and other approvals. There shall be performance of due diligence by Isuzu Motors. As of October 21, 2020, Competition Tribunal Of South Africa has approved the transaction. The closing of the transaction is expected by the end of 2020. As of July 17, 2020, closing of this transaction is expected during the first half of 2021. As of November 12, 2020, the transaction is expected to close with in the 1st half of FY2022 ending in March, 2022. The transaction is expected to result in a positive impact on the Volvo Group's operating income. KPMG Corporate Finance and KPMG AZSA LLC, Financial Advisory Arm acted as financial advisors to Isuzu Motors in the transaction.

Isuzu Motors Limited (TSE:7202) completed the acquisition of UD Trucks Corporation from AB Volvo (publ) (OM:VOLV B) on April 1, 2021.