KNDS has finally filed a takeover offer for Renault Trucks Defense (RTD), according to several sources. Krauss-Maffei Nexter Defense Systems (KNDS) reportedly presented an offer to the Swedish Volvo last Friday, the 29th of September, says one to The Tribune. This could finally boost the sales project initiated by the truck manufacturer, who wishes to transfer his activity in defence, made up of Renault Trucks Defense (RTD) – which owns the brands Acmat, Panhard, and Renault Trucks Defense, the american brand Mack Defense and Volvo Defense.
The sale was blocked since the summer, KNDS who have not sent in an admissible tender to Volvo, contrary to the belgian group CMI. Clearly, the French-German group had not submitted a financial offer. The Swedish group was very embarrassed by the attitude of KNDS. As a result, the timetable has slipped from 30 to 45 days, had stated to several sources contacted by The Tribune. The selection of the buyer could be decided by Volvo at the end of November, beginning of December, the worst in January.
A price delirious asked
If KNDS had not yet submitted an offer “admissible”, it had at least two profound reasons. In particular, the price charged by Volvo and its bank board, Rothschild. In a first time, the Swedish manufacturer was waiting for this sale 500 million euros approximately. But the bank board is touted to be able to do much better and win a jackpot of 700 million euros. But at the end of the due diligence (opening of accounts), KNDS and CMI was found “delirious,” the business plan devised by Volvo and its bank board.
Also the sales price is considered too high. And this all the more that Volvo has withdrawn from sale the american brand Mack Defense, which had been obtained in 2015, a very important contract in Canada for an amount in excess of € 500 million approximately. The “clipping” of this activity also seems to be very complicated. In addition, Volvo and RTD would not be the owners of the brands Renault Trucks Defense and Panhard (PSA). As for Renault, the French manufacturer would like to see disappear the brand RTD’s. Thus, according to several sources, CMI would have offered a sum of 400 million euros approximately, while KNDS estimates a selling price between 300 and 400 million euros.
A project that divides KNDS
At KNDS, the proposed acquisition of RTD in particular, the activities of light armored vehicles would join Nexter in the case of redemption, divides the French and the Germans. If the French attach much importance to this folder, even put the price, the Germans are much more looking. In clear, no question of doing anything, the family Bode-Wegmann (shareholder family of Krauss-Maffei) is not ready to open the floodgates of financial.