Already having a controlling stake in Scania, Volkswagen has increased its holdings in ordinary shares in MAN from 29.9% to 30.47%, so triggering a mandatory offer to all MAN shareholders for their shares.
The offer price for each ordinary share in MAN is expected to be around €95 and the offer price for each preference share will equal the domestic weighted average stock exchange price of the preference share in the last three months; predicted to be close to €60.
VW chairman Ferdinand Piech is keen to create a European truck business to rival Mercedes-Benz, despite previously being unable to make headway due to antitrust issues and resistance from Scania.
"The commercial vehicle business is a very attractive strategic business field for us. We, therefore, now want to pave the way for a closer cooperation between MAN, Scania and Volkswagen and thereby lay the foundations for generating synergies for the benefit of all shareholders," says Prof Dr Martin Winterkorn, CEO of Volkswagen.
"The specific brand characteristics and all business areas of MAN and Scania remain unaffected," continues Winterkorn. "Together with the management and employees, we want to shape an integrated commercial vehicle business for all shareholders and customers."
In a statement, MAN says it "shares the industrial logic behind a more intensified cooperation between MAN SE, Scania AB and Volkswagen AG". MAN adds that it "expects to continue our highly constructive strategic discussions with Volkswagen AG and Scania AB, in order to achieve progress along this path" and will "evaluate the offer when it is published".
