Swedish group Volvo is planning to sell its aerospace engine component business to streamline the group towards commercial vehicles.
Volvo is in talks with a number of potential buyers for the aero business.
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Volvo CEO Olof Persson said: "One of the prerequisites for a transaction being implemented is that a divestment could enable Volvo Aero to enter into a structure that would enhance the company’s opportunities for further development in its sector."
Volvo Aero develops and manufactures components for aircraft, rocket and gas turbine engines, and has a service and maintenance business.
In 2010, Volvo Aero’s net sales amounted to Skr7.7bn ($1.1bn), or 2.9% of Volvo’s total revenue.
Volvo is expected to finalise the deal in mid-2012.
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By GlobalData