French automotive group Renault its sells stake in Volvo for €1.48bn

Volvo truck

French carmaker Renault SA (EPA:RNO) on Thursday said it had pocketed EUR1.476bn (USD1.93bn) from the sale of its 6.5% of the share capital and 17.2% of the votes of Swedish trucks and buses manufacturer Volvo AB (STO:VOLV-A; STO:VOLV-B).

The French group sold 138.6m Volvo AB series A shares, representing its entire holding in the series A shares, it said.

The disposal was announced on Wednesday, when Renault said it would complete its exit from Volvo AB, after the sale in October 2010 of its entire series B stake.

The funds raised through this recent sale would be used to cut its net automotive debt, as well as for investments in France in 2013, accounting for 40% of Renault’s total investments next year and strategic growth investments in Russia and China.

These moves are aimed at making Renault’s plants in Europe more competitive and supporting its international expansion, the vendor said.

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