Volvo sells Aero unit for $995 million

STOCKHOLM—Swedish truck-maker AB Volvo will sell its aeronautic unit Aero to British engineering group GKN for 6.9 billion kronor ($995 million) in a move to focus more on its core heavy vehicle operations.

The company said the deal is scheduled to be completed in the third quarter and is expected to generate a capital gain of around $58.3 million.

Volvo says GKN won a bidding process to acquire the unit, saying it offers the best conditions for Volvo Aero’s development and future.