Volvo in $1.3bn road-building buy

Volvo Construction Equipment is the world's oldest company in the field

Volvo, the world's number two truck maker, is buying the road-building equipment business of Ingersoll Rand of the US for $1.3bn (£660m).

The deal will include 20 dealerships in North America and distribution arms in Europe and Russia.

Volvo, which sold its cars division to Ford in 1999, already has a large construction equipment division.

Volvo shares were 1.75% lower in early trading in Stockholm, with the market as a whole down 2%.

Ingersoll Rand's road development division is based in Shippenburg, Pennsylvania and has 2,100 employees.

Volvo chief executive Leif Johansson said the acquisition would give Volvo "a world-leading position within heavy road construction equipment".