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According to reports in the German magazine Der Spiegel and the British journal Financial Times Volkswagen is on the verge of a wide-ranging reshuffle of its truck operations, in a move that would see it take full control of Sweden’s Scania and Germany’s MAN.
The plan envisages VW to grab full control of Scania by significantly increasing its 46 per cent stake. VW would then transfer to the Swedish truckmaker its 29.9 per cent stake in MAN, the German truck and diesel engine group. Scania could in a third step launch a takeover bid for its bigger but less profitable German rival alongside a capital increase.
The plan, which is VW’s preferred option and was first reported by Germany’s Der Spiegel magazine, is at an early stage and subject to numerous layers of decision making at VW’s supervisory board and the executive boards of the companies involved. VW declined to comment. MAN and Scania issued a press release which does not confirm this development, but states that they are actively looking for cooperation projects, mainly related to the commercial vehicles, which would make it possible for the two companies to profit from synergies in research and development, manufacturing and sourcing.
According to the issuers this process has shown that a full realisation of potential synergies requires a closer cooperation by combining the two companies, while maintaining the unique brand values of the respective company. At this stage no decision has been taken, as there are a number of outstanding issues of commercial and legal nature.