MAN-Scania talks ‘collapse’

Talks between German engineering conglomerate MAN and Swedish truckmaker Scania about a possible merger have collapsed, the Frankfurter Allgemeine Zeitung said on Wednesday.

The report said MAN could now only take control of Scania through a hostile takeover.

Scania, its major shareholder Investor and MAN have failed to find enough common ground, especially on the issue of synergies to cut costs, the report said, quoting sources close to the Swedish group.

MAN could make Scania shareholders an improved offer of 475 kronor (52 euros) a share this week, valuing the Swedish group at 10.2 billion euros, the newspaper said.

Scania has fought off two merger bids from MAN.

The next step in the dispute will largely depend on Volkswagen, the biggest shareholder in both companies, the paper said.

Volkswagen has said it would prefer a friendly deal that would also include VW’s Brazilian trucking business.

It has set November 17 as a deadline for both companies to reach agreement. Failing that, it could support a hostile bid by MAN.