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.