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Scania in merger talks with Germany's MAN

AFP/The Local · 15 Nov 2010, 09:05

Published: 15 Nov 2010 09:05 GMT+01:00

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Scania said it had been investigating links with MAN "for some time" related to research and development cooperation related to commercial vehicles, as well as synergies in manufacturing and sourcing.

"This process has shown that a full realisation of potential synergies requires a closer cooperation by combining the two companies," Scania said in a statement.

The company added, however, that a possible merger would maintain the "unique brand values" of each company.

Scania emphasised as well that "no decision has been taken" and that discussions were "still ongoing" to resolve a number of outstanding issues.

The announcement comes following German media reports that German automaker Volkswagen wanted to increase its stake in Scania.

The move was said to be part of an overhaul of Volkswagen's trucking activities that would entail transferring its share in German truck firm MAN to its Nordic rival.

Volkswagen owns 45.7 percent of Scania and nearly 30 percent of MAN. MAN also has a 13.4 percent staken in Scania.

Shares in MAN jumped by more than five percent in early trading in Frankfurt to €86.98 ($118.66) while the DAX slid 0.45 percent overall to 6,704.16 at 8.55 GMT.

Story continues below…

Meanwhile, shares in Volkswagen slid 0.18 percent to €113.80 and in Stockholm shares in Scania dipped 0.60 percent to 145.20 kronor.

AFP/The Local (news@thelocal.se)

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Your comments about this article

11:29 November 15, 2010 by chapora
What a surprise! Scania will be bought out by VW in order to ensure the brand success of MAN. This is not going to be a merger but a buy out although for tax purposes VW will state (take that as lie) that it is a Merger to ensure minimal tax responsibility. After a several year period VW will then drop the Scania name and take full ownership. Thus VW will have dominance in the truck making field.

This will doubtless lead to large job loss on behalf of the employees of Scania as the new company rationalises under German leadership. Whole divisions will be moved abroad (China ect) as MAN picks away at Scania.

Full time Swedish employees that remain will be moved over to work for temping agencies the likes of Manpower loosing all their perks and benefits not to mention their hard earned Scania pension rights but still having to perform the exact same job. They will also loose all job security and effectively will be castrated from career advancement within MAN. This will mean a huge tax saving for MAN/VW as they no longer act as employers to their workers. Swedish tax coffers will loose out, Swedish employees will loose out and guess what VW will be scratching their heads wondering at how stupid & naive the Swedes are.

But then again just maybe the good people at Scania will wake up smell the coffee and wonder at why it was not their company that was buying up their competitor MAN a few years ago. And thus rebuff this wolf in sheeps clothing, save their face and company too.

Mr Wallenberg you should be ashamed of your self. Look what a mess you have put the people of Sweden in.
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