You are here: Home » Companies » News
Business Standard

Volkswagen to boost its MAN holding to 40%

Bloomberg  |  Berlin 

Volkswagen plans to boost its holding in German truckmaker MAN to as much as 40 per cent to forge a truck alliance with Scania in Sweden that could save upwards of euro 1 billion ($1.43 billion) in annual costs.

Wolfsburg, Germany-based Volkswagen (VW) today increased its stake in the commercial-vehicles maker to 30.47 per cent, requiring Volkswagen to make a mandatory bid for the entire company. Europe’s largest carmaker offered euro 95 per common share, less than the May 6 closing price of euro 96.52.

Volkswagen Chairman Ferdinand Piech is pushing MAN and Scania to reduce spending as he also pursues a merger with Porsche and seeks to surpass Toyota Motor Corp as the world’s biggest automaker by 2018. Volkswagen’s increased stake may allow the to get regulatory approval to share business information with one another and work more closely together.

“VW has long been keen to merge MAN and Scania to reap the benefits on purchasing, development and production,” said Frank Schwope, a NordLB analyst in Hanover, Germany, who recommends buying VW and MAN stock. “They’ve been frustrated by legal impediments and are taking the lead to see this project through.”

VW, which before today held 29.9 per cent of MAN’s voting rights, sees cost reductions of about euro 1 billion for an integrated company fully sharing research and development activities, CFO Hans Dieter Poetsch said.

VW aims for an MAN holding of 35 per cent to 40 per cent to give it a stable majority at annual meetings and estimates reaching that level may cost as much as euro 1.5 billion, he said. The carmaker will be able to buy the shares it needs on the open market after making the mandatory bid if enough investors don’t tender their shares at the offer price.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, May 10 2011. 00:55 IST
RECOMMENDED FOR YOU
.