MILAN (Reuters) – Italian truck and bus maker Iveco Group said on Thursday it had struck a preliminary deal with Sweden’s Hedin Mobility Group to transfer it its distribution and retail business in Nordic countries to simplify its operations.
Iveco Chief Executive Gerrit Marx said Hedin’s “remarkable market penetration” would help his company support its trucks, particularly those with electric and alternative propulsion systems.
Iveco will transfer its commercial activities for light, medium and heavy trucks in Sweden, Norway, Finland and Denmark, as well as retail sale activity for minibuses to Hedin, it said in a statement, without providing financial details.
The deal, which is expected to be finalised by the end of this year, will exclude distribution of other types of buses, financial services and Iveco’s other businesses.
Iveco said its commercial vehicle distribution and service network in the Nordics was currently based on 39 dealers and more than 100 workshops.
They will now join Hedin’s international dealer network, which include 270 dealerships selling more than 40 brands in 13 countries.
(Reporting by Giulio Piovaccari; Editing by Jamie Freed)