KNDS is considering buying the defence unit of AB Volvo (publ) (OM:VOLV B) in a transaction that may value it at about €500 million. KNDS is keen on acquiring Volvo Governmental Sales because it works with the unit on the €6 billion Scorpion armored-vehicle program for France, said Frank Haun, who heads the German manufacturer and is also co-Chief Executive Officer of Kmw + Nexter Defense Systems N.V. Volvo wants to divest the division, which has about 1,300 employees and just under €500 million in revenue.