On Tuesday, Volvo, a trucks and construction equipment maker said that it had decided to terminate a sales procedure for its Governmental Sales business because of insufficient offers.
In November last year, the Gothenburg-based company revealed its plan to sell the business.
Governmental Sales, which has the majority of its 1,300 employees in France, produces military and other specialist vehicles for the defence industry, governments, aid organisations, and peacekeeping forces.
A huge part of the business is Renault Trucks Defence, an armoured vehicles maker, which was reported in July to have attracted offers from KNDS, a Franco-German tank maker, as well as CMI, a Belgian group.
“We have previously announced our intention to divest this business, but the offers we have received do not reflect its value. We have therefore decided to discontinue the divestment process”, said Chief Financial Officer Jan Gurander in a statement.
Volvo stated that the business has a strong order book.
However, the sales account of the unit for about 1.5 percent of the total sales of Volvo, which amounted to 302 billion Swedish crowns or 28.12 billion pounds in 2016.