GERMANY/SWEDEN: Scania valued at EUR9.5bn, but sale to MAN not ‘done deal’

By just-auto.com editorial team | 14 September 2006

According to German press reports MAN is expected to value Scania at around EUR9.5bn. The Financial Times Deutschland has reported that MAN will offer SEK440 (EUR47.58) per Scania share. Dpa-AFX news surveyed financial analysts and found that their estimates of an offer price ranged from SEK425 to SEK500 per share, averaging at SEK449.

MAN confirmed rumours that it is interested in acquiring Scania yesterday (Wednesday), noting that there is a compelling industrial logic to a merger of the two companies. A merger would make them jointly the biggest-selling truck manufacturer in Europe and give the two companies a strong foundation for future growth.

According to JD Power Automotive MAN/Scania would have almost 25% of the European market for trucks over six tones, compared with DaimlerChrysler's 23% and Volvo's 22% (based on 2005 sales figures).

The deal is, however, by no means done yet. According to the Swedish financial newspaper Dagens Industri, Scania CEO Leif Ostling is not in favour of the takeover as it stands. This is partly because he wants VW's Brazilian truck operations to be part of the transaction.

MAN CEO Håkan Samuelsson has been reported as saying that he will not consider a hostile takeover. Samuelsson worked at Scania for 23 years before joining MAN in 2000.

Volkswagen has also reaffirmed its 'strategic interest' in Scania, reported dpa-AFX. Volkswagen is the largest single shareholder in the company, with 34% voting rights and ownership of 18.7% of the capital. Volkswagen is waiting for a firm offer from MAN before it makes any further public statements.

Scania's second largest shareholder, the Investor group, is reported to be open to an offer.