Volvo Construction Equipment has completed its previously announced acquisition of Swecon after receiving approval from the European Commission. The transaction, valued at an enterprise value of 7 billion SEK, brings Swecon’s business operations in Sweden, Germany, and the Baltics under Volvo CE’s ownership, including Entrack.
With the deal now closed, Volvo CE takes over Swecon’s full operating scope in the acquired markets. That includes sales of products and services, rental operations, aftermarket services, and customer support. The acquisition also includes Swecon’s offices and workshop facilities, along with approximately 1,400 employees who will transition into the combined organization as Volvo CE integrates the retail and service footprint.
Volvo CE positioned the acquisition as a strategic step to deepen its investment in retail operations and service sales across key European markets. By bringing a major dealer and service platform in-house, Volvo CE aims to make the retail market a core element of its European business, strengthening the link between equipment sales, rentals, parts, service, and customer support while increasing direct control over the end-to-end customer experience.
The company also highlighted a near-term financial impact tied to the accounting treatment of inventory. In the first quarter of 2026, Volvo CE expects earnings dilution from a higher inventory cost base because the acquired inventory includes pre-acquisition wholesale margin from when Volvo CE sold machines to Swecon. Volvo CE described this as a temporary effect that will end once the acquired inventory has been sold, with the total estimated impact for Q1 expected to be SEK 300 million.
For context on the scale of the acquired operations, Volvo CE noted that Swecon’s full-year 2024 revenues were SEK 10 billion. The completion of the acquisition therefore brings a sizeable retail and service business onto Volvo CE’s balance sheet and operating structure in some of its most important Northern European markets.
The announcement was issued by AB Volvo, part of the broader Volvo Group, which is headquartered in Gothenburg and whose shares are listed on Nasdaq Stockholm.
