Volvo eyes sale of Arquus to John Cockerill, takes $87 million hit

(Reuters) -Sweden’s Volvo said on Monday it had signed an option agreement to sell its Arquus defence unit to John Cockerill Defense, and would book a fourth-quarter operating loss from the deal of some 900 million Swedish crowns ($87.44 million).

Volvo expected consultations to become finalised during the first quarter of this year. In 2022, Arquus, with about 1,200 employees in France, represented around 1% of Volvo Group revenues, it said in a statement.

“This prospective acquisition contributes to strengthening cooperation between France and Belgium in a strategic sector,” said Belgium’s John Cockerill in a statement.

($1 = 10.2926 Swedish crowns)

(Reporting by Greta Rosen Fondahn; editing by Terje Solsvik)