An EUR6.7bn bid by VW Group for outstanding Scania shares has been rejected by Scania’s board in a move seen as a blow to VW’s hopes to build a global truckmaking operation able to rival the industry’s biggest players.
A Scania Board sub-committee formed to look at VW’s proposed offer concluded it was too low.
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The committee said the offer “does not reflect the long-term fundamental value of Scania and a fair share of the expected synergy potential and recommends to Scania’s shareholders not to tender their shares”.
“Scania is a world-leader in its industry and the Committee has strong faith in the business plan set out by the company. Our assessment is that the current offer does not reflect the long-term value of the company and a fair share of the synergies,” said Åsa Thunman, Chairman of Scania’s “Independent Committee”.
The Committee consists of Åsa Thunman (Chairman of the Committee), Peter Wallenberg Jr, Peter Abele, Johan Järvklo and Håkan Thurfjell.
VW Group is aiming to bring Scania together with its other truck brand, MAN, to yield cost savings and synergies. VW could raise its bid to secure a recommendation from the Scania board or talk directly to the company’s minority shareholders (typically Swedish pension funds).
VW Group already owns 62.6% of capital and 89.2% of votes in Scania but is seeking full control of the company.
