Volkswagen AG clinched a 55.9 percent stake in Munich-based truckmaker MAN SE, clearing the way for the carmaker to start building its European truck empire. Volkswagen's majority stake allows it to determine seats on the supervisory board, a way to accelerate co-operation between MAN and VW's Swedish brand Scania.
"Volkswagen is more than pleased with the result," Volkswagen Chief Executive Martin Winterkorn said in a statement on July 04. "As a result, our objective of realising substantial synergies between MAN, Scania and Volkswagen in the interest of all shareholders, employees and customers is moving closer."
VW's influential Chairman Ferdinand Piech has been itching to create Europe's biggest truckmaker to compete with rivals such as Volvo and Daimler and expand the reach of Volkswagen's sphere.
MAN, which loses its independence after 253 years in business, welcomed the fact that it now belongs to the VW family. A spokesman said: "The co-operation with Volkswagen and Scania now enters a new, offensive stage."
The acceptance of VW's offer was stronger than expected, said DZ Bank analyst Michael Punzet. "We expect ongoing rumours of additional buying of MAN shares by VW and a possible domination agreement in the coming month despite the fact, that without the closing of the offer, it does not really make sense for VW to by additional MAN shares directly," he added.
VW launched a low-ball bid valuing MAN at about 13.8 billion euros ($20.07 billion) in May, aiming to raise its stake in the truckmaker to 35-40 percent. Sources told Reuters that Europe's largest auto maker had clinched a majority stake in MAN.