MAN “to bid 9.5 billion euros for Scania”

German industrial conglomerate MAN is to offer nearly 9.5 billion euros (12 billion dollars), mainly in cash, for Swedish truck maker Scania, the Financial Times reported on Thursday.

MAN would offer about 440 kronor per Scania share and hoped to announce a deal next week, the newspapepr said, quoting people familiar with the negotiations.

Already on Wednesday, MAN – which has recently transformed itself from a widely diversified group to focus on trucks, diesel engines and turbo systems – had said that it thought a tie-up with Scania would have “compelling” industrial logic.

And it said it expected to issue a statement next week.

A combination of MAN and Scania would create the biggest truck maker in Europe, ahead of rivals DaimlerChrysler and Volvo.

Scania’s biggest shareholder, German car giant Volkswagen with a 34 percent voting stake, was understood to be likely to accept shares in the combined group in return for its stake, FT said.

Later, it would inject its own trucks business into MAN/Scania, probably in return for more shares, the newspaper added.

VW’s supervisory board would debate the matter at a meeting on Friday, FT said. A company spokesman was not immediately available to comment.

The newspaper said that MAN was seeking to cost savings of 500 million euros, thanks to joint purchasing and common platforms.

And in order to quell sensitivities in Sweden about about a takeover by a German group, MAN was likely to structure the deal using a Societas Europaea or European company, FT quoted directors as saying.


Volkswagen gets shares to take over Scania

Volkswagen, Europe's biggest carmaker, was set to take full control of Swedish truck manufacturer Scania on Tuesday after a small but crucial shareholder agreed to sell its shares.

Volkswagen gets shares to take over Scania
Swedish pension fund Alecta previously held out for a higher share price but agreed to sell its 2.04-percent stake in Scania, paving the way for Volkswagen to acquire full control the company.
On April 30, the German car giant said it lacked less than two percent more shares to reach its 90 percent goal, and thereby force the sale of the remaining shares.
"After new discussions with Volkswagen we have concluded that there will be no increase in their offer," Alecta said in a statement, referring to Volkswagen's refusal to pay more than 200 kronor ($30.5) per share.
In February, Volkswagen offered €6.7 billion ($9.3 billion) to acquire the nearly 40 percent of Scania it did not already own and to strengthen its position against its German competitors Daimler and the Swedish truck maker Volvo.
Scania's board of directors recommended shareholders not to part with shares at the price offered.
The offer expired on April 25th. However, confident that shareholders could be won over, Volkswagen extended its offer to May 16.
The German auto giant already owns truck and bus-maker MAN and bought into Scania in 2000.
It had previously said that it could make annual savings of €650 million through economies of scale by taking full control of the Swedish company.
The takeover is just the latest to hit Sweden's beleaguered vehicle manufacturing sector which has seen Chinese takeovers of the once iconic car brands Saab and Volvo.
Volvo Trucks announced more than 4,000 job cuts over the last six months and a voluntary redundancy scheme aimed to cut costs and increase profitability.