Volkswagen Secures Position for Full Takeover of Scania
Stock Purchase Paves Way for Consolidation of Heavy Truck Brands
Volkswagen has struggled to fully streamline and consolidate its heavy truck operations, with Sweden's Scania being a stubborn outlier that has thwarted VW's efforts for full integration in its heavy trucks business, which includes MAN AG and VW's eponymous commercial vehicles division. But that final roadblock looks like it may be disappearing with one of Sweden's pension funds holding a small share of Scania finally agreeing to VWAG's offer.
Part of the issue is Sweden's high threshold for full ownership of more than 90 percent of stock shares, which VW has been close to, but just short of, due to resistance from Swedish pension fund Alecta that held out for a higher share price from VW. Alecta ultimately withdrew its objection to the offer after talks with VW representatives, calling the ultimate stock buyout deal "acceptable."
Former Daimler trucks chief Andreas Renschler will be heading up the newly consolidated truck group. With the stage finally set for full integration into VWAG, Renschler will concentrate on integrating powertrains, electronics, and platform development among the three brands. The combination of MAN, Scania, and VW's commercial vehicles group will make Volkswagen the largest truckmaker in Europe. In the North American market, Daimler has significant marketshare with its Freightliner and Western Star brands.