Volkswagen has been given the green light to further increase its stake in Scania.
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Sweden’s securities exchange authority ruled last Friday that Volkswagen may increase its shares to give it a majority stake, without launching a formal takeover offer, according to dpa-AFX
Volkswagen currently holds 36.4% of the voting rights in Scania and had previously been limited to holding up to 49.99% of Scania shares. The decision was made in response to a specific request from Volkswagen.
Volkswagen is hoping to combine Scania with German truck manufacturer, MAN, in which it is also the largest shareholder, and its own manufacturing operations in Brazil. MAN launched a formal takeover offer for Scania last year, but a merger of the two companies has been blocked by Scania’s second largest shareholder Investor, which is supporting Scania management, which believes Scania’s business, and particularly its operations in Sweden, would be eroded.
According to dpa-AFX, an Investor spokesman said that it is good that Volkswagen has made its intentions clear.
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By GlobalData
