[Zed]

VWs strategic intent to leverage economies of scale and rationalize suppliers between of MAN & Scania has found the nod it was looking for from the Authorities. The EU commission has approved the same considering the fact that the merger will not lead to a monopolistic situation thanks to the presence of established competitors such as Daimler & Volvo in the commercial vehicle space. MAN and Scania are recognized as technology leaders in Medium and Heavy trucks. They may have lower in sales numbers than Daimler but their technical reputation is arguably stronger.

VW has had a majority stake in both MAN and Scania for a while now but was restricted from merging the two operations by the trade commission. That changes as of today.

From a customer perspective, not much will change. VW will certainly keep both brands and paraphernalia alive & kicking. Customers may get some cost benefits of the merger but its more likely that a bulk of the benefits will find its way into the P&L statements at VW. Its interesting to note that Scania makes its own transmission where as MAN sources from ZF. Conversely MAN makes its own axles where as scania sources it from vendors. Hence its probably the supplier community that will be following developments with bated breaths.

It will be interesting to see if VW will try and steer a different course for the MAN & Scania brands in India as they clearly have their sights set on usurping Daimler volumes and one can safely assume that VW will take the fight to the three pointed star across the globe.

[volkman10]

Volkswagen AG is offering $ 9.2 billion to acquire the remaining stake holding of Swedish commercial vehicle manufacturer Scania AB.

VW thus far has only achieved 200 million euros in purchasing savings from Scania, its own commercial vehicles unit and German truckmaker MAN SE (MAN), which VW also controls.

At present there prevails a conflict between VW and Scania’s other shareholders who feel that Scania is better off as an independent company and would continue to be profitable without VW’s acquisition.


http://www.bloomberg.com/news/2014-0...er-scania.html

[volkman10]

VW Group dealt blow as Scania rejects shares bid.
VW Group already owns 62.6% of capital and 89.2% of votes in Scania but is seeking full control of the company.

An EUR6.7bn bid by VW Group for outstanding Scania shares has been rejected by Scania's board in a move seen as a blow to VW's hopes to build a global truckmaking operation able to rival the industry's biggest players.

VW Group is aiming to bring Scania together with its other truck brand, MAN, to yield cost savings and synergies. VW could raise its bid to secure a recommendation from the Scania board or talk directly to the company's minority shareholders.

http://www.just-auto.com/news/vw-gro..._id144032.aspx

[Ashley2]

I am sure, by integrating the brands, MAN would benefit more than Scania, which is what VW also wants. Instead of investing in MAN to reinvent it, they are trying to use the technology of Scania. I dont find any fault in this.

[volkman10]

VW inching closer to acquiring remaining shares of Scania!

Volkswagen Group moved closer to sealing a 6.7 billion euro ($9.3 billion) deal for the rest of truckmaker Scania after a major shareholder, Swedbank Robur, said today it would accept VW's offer for its shares.

http://europe.autonews.com/article/2...ish-truckmaker

[volkman10]

Volkswagen secures Scania as Swedish stakeholders sell its shares.

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.

http://auto.economictimes.indiatimes...sells/35064074