PROCORDIA PACT REACHED IN SWEDEN

The Swedish government and Volvo have reached an agreement over the food and pharmaceutical conglomerate Procordia. The Swedish car manufacturer had planned to merge with Procordia in a takeover bid, but the government will continue with its plan to privatize the minority stake that it holds. However, Volvo will hold the largest stake in Procordia, increasing its 42.7% to 45%. The government holds 40%.

Procordia's pretax profit for 1991 was 3.3 billion Swedish kroner ($554.4 million), up 200% on the previous year. This was attributed to the health care unit, Kabi Pharmacia, making a strong recovery from a restructuring program. Operating profit at Kabi Pharmacia grew 41% to 2.1 billion kroner in 1991, and sales were 9.5 billion kroner, up 12%. The biotech operation, Pharmacia Biosystems, made operating profit of 272 million kroner, having made a loss of 95 million kroner in the previous year.