Volvo buys out its 50% partner Clark

Volvo is taking full control of VME, the world's number three manufacturer in the construction and earthmoving business, by buying out its 50% partner Clark Equipment for an estimated œ360 million.

The deal is one of the most important this decade in the industry and is also Volvo's largest acquisition since the company failed to reach an agreement with Renault in 1993.

The deal will be funded entirely by Volvo from its cash reserves and will end the uncertainty about the ownership of the company.

The name VME is to be replaced by Volvo Construction Equipment Corporation and will continue to be based in Brussels.