Volvo Construction Equipment Completes SEK 7 Billion Acquisition of Swecon and Integrates Retail Operations Across Northern Europe

Volvo Construction Equipment Completes SEK 7 Billion Acquisition of Swecon and Integrates Retail Operations Across Northern Europe

(IN BRIEF) Volvo Construction Equipment has completed its acquisition of Swecon after receiving approval from the European Commission, taking over Swecon’s operations in Sweden, Germany, and the Baltic countries, including Entrack, in a deal valued at SEK 7 billion. The transaction includes Swecon’s sales, rental, and aftermarket businesses, along with offices, workshops, and around 1,400 employees, allowing Volvo CE to strengthen and expand its direct retail and service presence in Europe. While the acquisition is expected to temporarily dilute Volvo CE’s earnings in the first quarter of 2026 due to inventory-related accounting effects estimated at SEK 300 million, this impact is expected to be short-lived. Swecon reported revenues of approximately SEK 10 billion in 2024, underlining the significance of the business now integrated into Volvo CE.

(PRESS RELEASE) GOTHENBURG, 2-Feb-2026 — /EuropaWire/ — Volvo Construction Equipment (Volvo CE) has now finalized its previously announced acquisition of Swecon after receiving the necessary approval from the European Commission. With all regulatory conditions fulfilled, the two organizations have officially combined their operations. Through this transaction, Volvo CE has taken full control of Swecon’s business activities in Sweden, Germany, and the Baltic countries, including its subsidiary Entrack. The deal is valued at an enterprise value of SEK 7 billion.

The acquisition encompasses Swecon’s full commercial and operational footprint in these markets. This includes the sales of construction equipment and related services, rental activities, aftermarket support, maintenance operations, as well as associated offices and workshop facilities. As part of the transaction, approximately 1,400 Swecon employees have transferred to Volvo CE, integrating into the company’s broader European operations.

Volvo CE considers this acquisition a strategically significant step in strengthening its presence across key European markets. By bringing Swecon’s retail and service activities in-house, the company aims to deepen its direct engagement with customers, enhance its service capabilities, and make retail operations a central pillar of its European business model.

Volvo CE has indicated that the acquisition will have a temporary impact on its financial performance in the first quarter of 2026. Earnings are expected to be diluted due to a higher cost base associated with the inventory acquired from Swecon, which includes pre-acquisition wholesale margins from earlier machine sales between Volvo CE and Swecon. This effect, estimated at approximately SEK 300 million for Q1 2026, is expected to disappear once the acquired inventory has been sold.

For reference, Swecon generated revenues of around SEK 10 billion in 2024, reflecting the scale of its operations across the markets now integrated into Volvo CE’s business.

The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs almost 100,000 people and serves customers in almost 180 markets. In 2025, net sales amounted to SEK 479 billion (EUR 43 billion). Volvo shares are listed on Nasdaq Stockholm.

Media Contact:

Claes Eliasson
Head of Media Relations
+46 76 553 7229
press@volvo.com

SOURCE: Volvo Group