AB Volvo says finalizes Aero sale to GKN

STOCKHOLM Mon Oct 1, 2012 9:10am EDT

Volvo AB CEO Olof Persson speaks during a press meeting at Volvo Aero in Trollhattan, Sweden, July 5, 2012. REUTERS/Thomas Johansson/Scanpix Sweden

Volvo AB CEO Olof Persson speaks during a press meeting at Volvo Aero in Trollhattan, Sweden, July 5, 2012.

Credit: Reuters/Thomas Johansson/Scanpix Sweden

STOCKHOLM (Reuters) - World number two truck maker AB Volvo (VOLVb.ST) said on Monday it had finalized the sale of its aerospace business to British engineering group GKN Plc (GKN.L) for 6.9 billion Swedish crowns ($1.05 billion).

The deal to sell Volvo Aero, which was unveiled in July and approved by the European Union this month, would generate a 300 million crown one-off boost to operating earnings in the fourth quarter of the year.

The sale of the unit, which Volvo had declared was no longer part if its core business, is one of the top deals by a listed blue chip in the Nordic region this year. ($1 = 6.5566 Swedish crowns)

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