Volvo Cars has signed a share purchase agreement with Northvolt AB, securing full ownership of NOVO Energy AB. Additionally, the two companies have entered a framework agreement to explore future collaboration opportunities in North America.
Key Highlights:
- Volvo Cars will take full ownership of NOVO Energy AB, pending approvals from regulatory authorities.
- The transaction requires clearance from the United States Bankruptcy Court for the Southern District of Texas and the Inspectorate of Strategic Products in Sweden.
- The deal will not impact Volvo Cars’ planned investments or cash flow ambitions.
- No outstanding claims will remain between Volvo Cars and Northvolt AB after the completion of the transaction.
- A new framework agreement between Volvo Cars and Northvolt AB will explore potential future supply opportunities in North America.
Regulatory Approval and Transaction Details
Volvo Cars’ acquisition of NOVO Energy AB is contingent on regulatory approvals, specifically from the United States Bankruptcy Court for the Southern District of Texas and Sweden’s Inspectorate of Strategic Products. Both Volvo Cars and Northvolt AB must fulfill specific conditions before finalizing the transaction.
Despite this acquisition, Volvo Cars has confirmed that its cash flow and planned investments will remain unaffected. Once all conditions are met, Volvo Cars will hold complete ownership of NOVO Energy, and there will be no remaining financial claims between the two companies.
Volvo Cars’ Strong 2023 Performance
In 2023, Volvo Cars achieved record-breaking financial results, reporting:
- Core operating profit of SEK 25.6 billion
- All-time high revenue of SEK 399.3 billion
- Global sales reaching 708,716 vehicles
About Volvo Cars
Founded in 1927, Volvo Cars has built a reputation as a global leader in automotive safety, innovation, and sustainability. The company has an ambitious goal to become a fully electric carmaker while working toward net-zero greenhouse gas emissions by 2040.
With approximately 43,400 full-time employees as of December 2023, Volvo Cars operates production plants in Sweden, Belgium, the U.S., and China, along with R&D and design centers in Sweden and China. The company is publicly traded on Nasdaq Stockholm under the ticker “VOLCAR B”.
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