Closer cooperation between MAN, Scania and Volkswagen

Volkswagen goes one step further towards an integrated commercial vehicle group consisting of MAN, Scania and Volkswagen. This step aims at enabling a closer cooperation of the companies involved. In this context, Volkswagen Aktiengesellschaft increased its holdings in ordinary shares in MAN SE from 29.9 percent to 30.47 percent. Thereby Volkswagen also increased its holding in the overall share capital in MAN from 28.7 percent to 29.2 pc. The previous discussions among all parties affirmed that by closer cooperation of MAN, Scania and Volkswagen substantial synergies in the fields of procurement, development and production can be realised. However, antitrust restrictions currently existing pose high hurdles for this. To enable a more in-depth cooperation among MAN, Scania and Volkswagen, merger control clearance and further increase of Volkswagen’s holding in MAN are required. Therefore, Volkswagen has decided to lay the foundations to overcome these hurdles and to enable a more in-depth cooperation among MAN, Scania and Volkswagen. At the same time options to further shape an integrated commercial vehicle group remain open for the future. “The commercial vehicle business is a very attractive strategic business field for us. We, therefore, now want to pave the way for a closer cooperation between MAN, Scania and Volkswagen and thereby lay the foundations for generating synergies for the benefit of all shareholders. The specific brand characteristics and all business areas of MAN and Scania remain unaffected. Of course we respect co-determination and employee rights to the full extent and we are supportive of the locations and employees. Together with the management and employees, we want to successfully shape an integrated commercial vehicle business for all shareholders and customers”, said Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft. Due to crossing the threshold of 30 percent of the voting rights in MAN, German takeover law requires Volkswagen to make a mandatory offer to all shareholders of MAN to acquire their shares in MAN. This offer will be made by way of a cash offer and is expected to be published at the end of May at the latest following its approval by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht). The offer price for each ordinary share in MAN is expected to amount to EUR 95.00 and the offer price for each preference share in MAN will equal the domestic weighted average stock exchange price of the preference share in the last three months. This price is expected to be in the area of EUR 60. Following merger control clearance and a respective increase of the holding in MAN, the cooperation between MAN, Scania and Volkswagen can be intensified and part of the synergies identified by the parties involved can be realised. A large part of the synergies to be generated in this first step will come from a close cooperation in the field of procurement. “By this closer cooperation, MAN and Scania will further increase their profitability and thereby create additional value for all shareholder groups. Volkswagen as the largest shareholder of both companies will benefit from the related value enhancement as well as the other shareholders of MAN and Scania”, added CFO Hans Dieter Pötsch.