(RTTNews) - Swedish commercial vehicle major AB Volvo (VOLVY.PK) announced Thursday that Volvo Construction Equipment or Volvo CE has reached an agreement to sell its global ABG paver business to Ammann Group.

The transaction is subject to regulatory approvals. Closing is anticipated in the first half of 2024.

The deal will negatively impact Volvo Group's operating income by approximately 650 million Swedish kronor in the fourth quarter of 2023.

The divestment includes the ABG paver production and technology center in Hameln, Germany. In 2022, ABG paver business generated revenues of 1.10 billion kronor.

As a consequence of the divestment, production of Volvo CE compaction equipment in Hameln will be phased out. About 400 people will move from Volvo CE to join the Ammann Group.

The company said it will ensure the availability of the range and full support through the Ammann Group distribution channels and selected Volvo CE dealers.

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