Volkswagen is devising a plan to take full control of Swedish truckmaker Scania and Germany’s MAN, according to reports.
The German automotive giant is said to be planning to increase its 46 per cent stake in Scania, thereby assuming full control—after which it would then transfer its 29.9 per cent stake in truck and diesel engine group MAN to Soedertaelje, Sweden-based Scania.
The plan was first reported in German weekly magazine Der Spiegel.
It is thought that VW would increase its stake in Scania to between 75 and 80 per cent.
The plan is reported to be at an early stage and subject to numerous approvals by VW’s supervisory board and the executive boards of Scania and MAN.
The move would be a significant step in VW’s strategy to become the world’s biggest vehicle company in terms of sales, profitability and number of brands.
Relations between Scania and Munich-based MAN have been frosty ever since Scania’s failed attempt to take over MAN in 2006. Despite this, the two truckmakers are said to already be in talks about areas of co-operation that include joint purchasing, component sharing and hybrid engine technology.
With MAN valued at €11.6 billion on the stock market, and Scania €6 billion, a merger of the two companies would prove costly for VW.
VW had amassed a war chest of €19.6 billion in net cash by the end of September as revenue grew much faster than investments, thanks to a rebound in demand.
