Deal earns VW stake in truck building

Volkswagen’s majority stake allows it to determine seats on the supervisory board, a way to accelerate cooperation between MAN and VW’s Swedish brand Scania.

“Volkswagen is more than pleased with the result,” Volkswagen chief executive Martin Winterkorn said. “As a result, our objective of realising substantial synergies between MAN, Scania and Volkswagen in the interest of all shareholders, employees and customers is moving closer.”

VW’s influential chairman Ferdinand Piech has been itching to create Europe’s biggest truckmaker to compete with rivals such as Volvo and Daimler and expand the reach of Volkswagen’s sphere.

Scania and MAN between them produced 172,000 trucks above six tonnes in weight last year, compared with Daimler’s 274,000 units, with the latter accounting for about 10 per cent of global truck output, data from IHS Global Insight showed. With 171,000 units, Volvo accounted for 6.2 per cent.

MAN, which loses its independence after 253 years in business, welcomed the fact that it now belongs to the VW family. A spokesman said: “The cooperation with Volkswagen and Scania now enters a new, offensive stage.”

The acceptance of VW’s offer was stronger than expected, said DZ Bank analyst Michael Punzet.

VW launched a low-ball bid valuing MAN at about 13.8 billion euros (£12.4bn) in May, aiming to raise its stake in the truckmaker to 35-40 per cent.