Volvo Construction Equipment Successfully Completes Acquisition of Swecon in Strategic Move

Volvo Construction Equipment Successfully Completes Acquisition of Swecon

In a significant development in the construction sector, Volvo Construction Equipment (Volvo CE) has officially completed its acquisition of Swecon. This strategic move comes after receiving necessary approvals from the European Commission, allowing the two companies to combine their strengths.

The deal, which is valued at 7 billion SEK, includes the entirety of Swecon’s operations in Sweden, Germany, and the Baltic countries, encompassing sales of equipment and services, rental services, and aftermarket support. With 1,400 dedicated employees, Swecon brings valuable expertise and resources to Volvo CE, enhancing its operational capabilities across key European markets.

Notably, the acquisition also includes Swecon's workshop facilities and office locations, providing Volvo CE with a stronger foothold in regions critical to their growth and service offerings. This merger represents a vital strategic step for Volvo CE, as it aims to amplify its presence in the retail market, making it a core component of their operations in Europe.

Volvo CE anticipates that this acquisition will enable it to invest further in its retail operations and enhance service sales, thus positioning itself competitively in a rapidly evolving landscape. Despite the optimistic outlook, it is worth noting that Volvo CE's earnings will face a temporary dilution in the first quarter of 2026. This dilution is attributed to a higher cost base in inventory acquired from Swecon, specifically due to pre-acquisition margins. The expected impact on earnings for Q1 is estimated at around 300 million SEK. However, this effect is expected to normalize as the acquired inventory is sold.

In 2024, Swecon reported revenues amounting to 10 billion SEK, further solidifying its position in the construction equipment market and highlighting the strong financial backdrop against which this acquisition occurred.

For journalists and stakeholders seeking further insights into this strategic acquisition or related inquiries, Claes Eliasson, Head of Media Relations for Volvo CE, can be reached at +46 76 553 7229.

Founded in 1927 and headquartered in Gothenburg, Sweden, Volvo Group is committed to driving sustainable transport and infrastructure solutions, employing nearly 100,000 people worldwide. With its focus on innovation and service, Volvo Group continues to lead with significant net sales, reported at 479 billion SEK in 2025.

For ongoing updates, interested parties can follow Volvo Group on LinkedIn and explore more about their initiatives at their official website volvogroup.com.

In conclusion, the successful integration of Swecon into Volvo CE not only represents a leap forward in enhancing operational capacity but also reflects the broader ambitions of Volvo in establishing a more resilient and customer-focused service structure across Europe. As the landscape continues to evolve, the collaboration between these two entities is expected to yield substantial benefits for stakeholders and customers alike.