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Magna rules out Volvo bid
05 November 2009
Magna has ruled out making a bid to buy Volvo from Ford after its takeover of Opel/Vauxhall collapsed.
The Canadian parts firm had long been expected to complete a deal to but the European firm from General Motors, but GM yesterday decided to pull out of the deal and go it alone with Opel instead.
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A brief history of Magna
Don Walker, Magna's co-chief executive officer, said the firm would not be looking to takeover any other manufacturers, including Volvo, and would instead be looking to acquire other auto parts businesses.
“It's not in our plans,” said Walker, referring to the likelihood of Magna taking over another manufacturer. “We will be focusing on the parts business.”
Speaking at a press briefing at the Chrysler-Fiat press conference yesterday, Walker said he was neither surprised nor disappointed with GM’s decision, although he acknowledged it had wasted lots of time and money on the failed takeover.
“This was a situation where we could help our biggest customer [GM],” said Walker. “They saw that now it was better to hold on to it.”
He also said Magna could emerge stronger from the situation, as it has saved cash which can be invested into other business interests.
“We see a lot of opportunities out there during the next few years,” he said, adding that the company still had a strong balance sheet despite keeping its plants operating in the industry downturn.
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