Scania rejects Volkswagen bid

The independent committee representing Scania has rejected VW's Euro 6.7 billion bid to assume full ownership of the Swedish marque

Volkswagen Group’s recent bid for full control of Scania has fallen on deaf ears, with an independent committee for the board of the Swedish truck maker recently rejecting the German automotive giant’s offer of Euro 6.7 billion to purchase the remaining portion of Scania it does not already own.

Volkswagen currently owns 89.2 per cent of Scania’s voting rights and 62.6 per cent of its capital, but by acquiring the remaining portion, it would neatly sidestep the legal constraints currently in place to protect minority shareholders. This would allow Volkswagen to realise the full potential of synergies between Scania and its other major truck brand, MAN.

While some industry analysts have viewed Volkswagen’s offers as generous – the figure amounted to a 50 per cent premium over Scania’s share price when it was made in February 2014 – others have suggested it falls short, given the current low ebb of the global truck industry and Scania’s likelihood for future growth.

Scania wasn’t swayed by the offer, which its independent committee said fails to acknowledge “…a fair share of the expected synergy potential…” of coming under full Volkswagen ownership.

Volkswagen is sticking to its guns, however, and now has until April 25, 2014, to convince Scania shareholders of the merits of its offer. Company executives at Volkswagen have said they remain confident the offer will eventually succeed.

Scania rejects Volkswagen bid

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