Article: F0RD TO BUY VOLVO CARS pounds 3.89 billion merger

FORD has struck a deal with Sweden's AB Volvo to buy its Volvo Cars division for pounds 3.89 billion, it announced today.

The deal comes as part of a wave of mergers and takeovers among car companies as they battle to deal with over-capacity in the market.

It follows speculation earlier this month that the US giant was lining up a bid for Rover parent group BMW. The claim was later denied by the German group amid mounting fears over the future of Rover if a deal was agreed with Ford. Volvo said in a brief statement today that the sale would allow the company to concentrate on its other operations, which include trucks, buses and aircraft and marine engines. Both firms will now have joint ...

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