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
- Volkswagen eyes Scania stake: report (14 Nov 10)
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.
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.