/ 9 February 2000

VOLVO TO BUY DISTRIBUTOR BACK

SWEDISH bus and truck manufacturer AB Volvo said on Tuesday it will step up its investment in southern African by acquiring its regional distributor, liquidated last month, for $10-million. Executive vice-president Lennart Jeansson said that Volvo has reached an agreement with the liquidators to acquire the assets of Volvo Trucks, one of the companies owned by Zimbabwean businessman Billy Rautenbach. Rautenbach’s Hyundai Motor Distributors, a number of other distribution networks and a car assembly plant in Botswana were placed into liquidation last month by banks in a bid to recover debts estimated at $200 million. Volvo said it would also buy the assembly plant for trucks and bus chassis in Gaborone.

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