The French group RENAULT and the Italian FIAT have officially announced the planned acquisition by IVECO, FIAT subsidiary, of the 50% stake held by RENAULT in IRISBUS, joint venture between the two groups. The price of the transaction was set at EUR 175 million. IVECO will increase its stake to 65% then buy the remaining 35% at the end of December 2002. This operation follows on from the decision by the European competition authorities to allow the alliance between RENAULT and VOLVO in heavy goods vehicles, on condition that RENAULT frees itself from IRISBUS. The latter was in 2000 the largest European constructor of buses and coaches (behind the German EVOBUS) with world sales of 9,811 vehicles over 3.5 tonnes. Its turnover in 1999 (last known financial year) totalled EUR 1.09 billion. See EUROPE of 6 September 2000, p.12 and EI of 13 October 2000.