TOKYO/STOCKHOLM — Sweden's Volvo AB will sell its Japan-based UD Trucks business to Isuzu Motors in a deal worth around $2.3 billion (£1.79 billion), exiting a low-margin business and boosting its cash pile as competition for high-tech trucking heats up. The deal, announced by the companies on Wednesday, is part of a broader alliance that will see them share advanced technology for electric and self-driving trucks and use their combined heft to cut development costs. Volvo shares rose 5% in morning trading. Isuzu shares had gained 3% during Tokyo trading hours. Volvo said the transaction will add to its operating income by about SEK 2 billion ($208 million) and increase its net cash by SEK 22 billion.

Source: New York Times December 18, 2019 05:35 UTC