Volvo agrees to divest truck line

WASHINGTON (AP) -- Volvo has agreed to a Justice Department requirement that the company divest itself of a line of heavy-duty trucks to proceed with its proposed $1.8 billion acquisition of Renault.

Renault VI of France, through its Mack Trucks subsidiary in Allentown, Pa., and AB Volvo of Sweden, through its North American truck subsidiary in Greensboro, N.C., are major producers of a broad range of heavy trucks in the United States.

The Justice Department's antitrust division filed suit in U.S. District Court to block the original deal.

At the same time, it filed a proposed consent decree that, if approved by the court, would resolve the lawsuit by having Volvo sell its line of so-called "heavy-duty low-cab-over-engine" trucks.