Dive Brief:

• Volvo Construction Equipment is buying out the off-road hauling business of Terex in a $160-million cash transaction.
• Volvo sees a fit between its existing equipment markets and light mining, where five models of rigid Terex haulers are used, and it sees three models of articulated haulers supplementing its business in countries with emerging economies.
• The rigid haulers can carry 32 to 91 tons, and the articulated machines have capacities ranging from 25 to 38 tons.

Dive Insight:

The deal — as long as regulators approve — gives Volvo the Scottish factory where Terex Equipment Ltd. makes haulers, and Volvo takes over U.S. distribution of the equipment and a minority Terex holding in a Chinese company, Inner Mongolia North Hauler Joint Stock Co., that makes rigid machines under the Terex brand. Terex said its business focus now is on lifting and material handling equipment, and the hauler business is no longer a good fit.