STOCKHOLM (Reuters) - Swedish trucks maker AB Volvo's Aero unit will not take part in the auction of DaimlerChrysler AG's aero engines division, the Swedish business daily Dagens Industri reported on Monday.
"Before Volvo Aero decided to refrain from entering a bid for MTU, it carried out an extensive analysis, which showed that the synergies between the companies are insufficient," Dagens Industri said on its Web site.
"The sum on the price tag turned out to be too high," the newspaper quoted a source at Volvo as saying.
The planned sale of MTU Aero Engines GmbH is part of Daimler-Chrysler's efforts to divest non-core units.
The daily Financial Times reported earlier that MTU was valued at about 1.8 billion euros ($2.03 billion).
Volvo Aero makes components for aircraft and rocket engines. With second-quarter sales of 1.86 billion crowns ($230 million) it was Volvo's smallest division, accounting for 4.2 percent of group turnover.