Swedish luxury vehicle company Volvo VLVLY has announced an agreement to sell its Arquus defense unit to John Cockerill Defense.
The deal will be finalized after mandatory consultations with staff representative bodies. The consultations are expected to be finalized in first-quarter 2024.
This strategic move is expected to result in an operating loss of approximately 900 million Swedish crowns ($87.44 million) for Volvo in the fourth quarter of 2023.
Arquus manufactures and sells specially designed vehicles to defense forces and employs about 1,200 employees in France.
The negative earnings effect will be reported in the segment Group Functions & Other and will be excluded from adjusted operating income.
In 2022, Arquus represented approximately 1 % of Volvo Group revenues.
Price Action: VLVLY shares closed higher by 0.62% at $24.32 on Friday.
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