VW nears full control of Scania

As another deadline passes, VW is inching closer to the 90 per cent ownership mark that would give it full control of Scania

According to international news agency Reuters, Volkswagen AG is poised to cross the 90 per cent share threshold in Swedish truck manufacturer Scania, with the German giant recently announcing it now controls 88.25 per cent of Scania’s equity and 95.81 per cent of its voting rights.

A majority owner for many years, Volkswagen AG needs to cross that 90 per cent threshold to win full control of Scania and realise its synergies with sibling truck brand MAN Truck & Bus AG and VW’s own commercial vehicles division – VW is currently restricted in this respect by legislation that protects minority shareholders.

Acquiring total control of Scania would allow Volkswagen AG to create a European behemoth of truck manufacturing – a formidable force with which it could target Daimler AG and Volvo AB.

Volkswagen AG initially moved to secure full control of Scania with a Euro 6.7 billion offer in February, when it owned 89.2 per cent of the voting rights in Scania and 62.6 per cent of its capital. The offer amounted to an attractive premium of 57 per cent per Scania A share and 53.3 per cent per Scania B share, but was rejected in March.

A new deadline of April 25 was set, but again Volkswagen AG failed to persuade a sufficient number of key stakeholders. It’s now set a new deadline of May 16 for the acceptance offer.

The move has prompted Swedish holding firm Investor AB, once the full owner of Scania, to tender a stake of just under 0.4 per cent.

“With our limited trading position and given the wide acceptance among other shareholders, we do not wish to contribute to an unclear ownership structure in Scania,” Investor AB’s Chief Executive, Borje Ekholm, told Reuters.

In a statement VW underlined its commitment to realising its plans.

“We’re confident that during the extended acceptance period we will meet the necessary acceptance level for this transaction,” the statement reads.

VW has reiterated it will not raise is initial bid.

VW nears full control of Scania

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