GOTHENBURG, Sweden (Feb. 22) — Volvo AB said it has broken off negotiations to buy 46% of rival truck-maker Scania AB from Investor AB because Investor was demanding too much money for its shares.

Volvo had been seeking control of Scania since January, when it bought a 13% stake in the company and announced that it planned to buy the rest.

Volvo and Scania, respectively, are the second- and third-largest truck manufacturers in Europe.

Volvo president and CEO Leif Johansson said his company bought its shares “when, following discussions with Investor, we believed that Investor was considering withdrawing as the principal owner and accordingly was receptive to an offer for the entire company.”

Investor, meanwhile, declared that Scania can survive on its own and asked Volvo to sell its shares in Scania.

“To have your strongest competitor as one of the largest owners is in the long-run inappropriate for Scania,” said Investor chief executive Claes Dahlbaeck in a statement.

Johansson said Volvo does not intend to sell.

“Volvo has clearly declared its intention to participate actively in the ongoing consolidation in the commercial vehicle industry,” he said. “The decision to terminate discussions does not imply any changes in this objective, and we are now going to proceed with the work of strengthening Volvo’s position.”

From a cash standpoint, Volvo already is quite strong following an agreement to sell its automobile division to Ford Motor Co. for $6.5 billion US.