EU Ruling Puts Volvo, Scania on Market

Volvo said the European Commission blocked its $6-billion purchase of rival Scania on concerns the combined company would have a dominant position in the Swedish and British markets for trucks. The ruling puts both truck makers back on the market where competitors are eyeing the Swedish name brands, though Volvo said it doesn’t plan to sell its 45.5% Scania stake now. The commission opposed the purchase because the combined company would have 93% of the Swedish truck market, 50% of the Danish market and 40% of the British market. Volvo asked to be judged on a Europe-wide basis, where it would have 30% of the market for heavy trucks. It bid for Scania to expand its global truck market share after selling its car unit to Ford Motor Co. Volvo’s ADRs rose $1.38 to close at $27.25 on Nasdaq.