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Volvo eyes Renault trucks?
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March 30, 2000: 5:55 a.m. ET
Report: Swedish truck maker seeks to rebuild strategy with French acquisition
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LONDON (CNNfn) - Swedish truck maker Volvo is in advanced talks to acquire the commercial vehicle unit of former partner Renault, according to a report published Thursday
Volvo sold its auto arm to Ford Motor Co. (F: Research, Estimates) last year to focus on the truck market, only to have its strategy undermined when European regulators earlier this month blocked its $7.5 billion takeover of Swedish rival Scania.
Volkswagen subsequently acquired an 18 percent stake in Scania for 13.84 billion Swedish crowns ($1.6 billion), the latest in a series of deals in the consolidation of the global auto and truck business.
The Swedish newspaper Dagens Industri said the Volvo board was due to meet Thursday to discuss the proposed acquisition of Renault Vehicules Industriels (RVI). Volvo and Renault declined to comment on the report.
Analysts said Volvo has become a takeover target, and an acquisition to reinforce its position in the heavy truck market could help it stay independent. However, Renault has recently stated that it regards trucks as a core part of its business.
Volvo and Renault in 1993 ended an often acrimonious four-year relationship, after opposition by the Swedish firm's shareholders overturned plans by both companies to merge. The companies then sold their holdings of each other's shares.
 Renault's fortunes have since recovered. Last year it acquired control of Japan's Nissan Motors and is now seeking to take a stake in South Korea's Samsung Motors.
Volvo agreed a strategic tie last October with Mitsubishi Motor, the Japanese automaker in which DaimlerChrysler (FDCX) on Monday acquired a 34 percent stake.
Daimler said it is looking for an Asian truck partner, and said the Mitsubishi-Volvo link would continue.
The commercial vehicle division at Renault, which owns U.S. truck maker Mack Trucks as well as making trucks with its own badge on them, posted operating profit of  220 million in 1999 on sales of 6.48 billion, representing 17 percent of total Renault sales.
Renault (PRNO) shares were almost 2 percent higher at 41.88 mid-morning Thursday, while the CAC 40 in Paris was more than 3 percent lower. Volvo shares were down 2.7 percent at 231.5 Swedish crowns, leaving the stock 14 percent below its high for this year. 
-- from staff and wire reports
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