Push towards integrated group including Scania seems unstoppable
July 5, 2011
Volkswagen Group’s creation of a European commercial vehicle behemoth appears inevitable, now that it controls a majority of MAN shares.
Following the required regulatory approvals, Volkswagen will hold 55.9 percent of the voting rights and 53.7 percent of the share capital of MAN.
German stock exchange rules mean Volkswagen had been forced in May to make a mandatory offer for the truckmaker.
The German automotive firm wants to form an integrated commercial vehicles group consisting of MAN, Scania and Volkswagen.
“Following receipt of the regulatory approvals and subsequent settlement of the mandatory offer, substantial synergies in the fields of procurement, development and production can be realised through a closer cooperation of MAN, Scania and Volkswagen,” Volkswagen says.
The group has increased its share holdings in MAN steadily for more than five years and had bought 15 percent of that company in October 2006.
Last November, it was revealed that Volkswagen had engaged in merger talks with Scania, in which it had already built a controlling stake.
Part of its Strategy 2018, aimed at gaining “economic and environmental leadership in the global automotive industry”, Volkswagen believes it can gain Euro200 million in synergies in purchasing and procurement, research and development, and production through the integration.
Volkswagen insists this will not affect the brand characteristics or business areas of MAN and Scania.