Sources: Vw to get approval from EU to purchase MAN

Article by Christian Andrei, on September 23, 2011

After overcoming procedural difficulties with regulators earlier, Volkswagen AG is now set to secure unconditional approval from EU to purchase German truckmaker MAN SE, according to two sources. In June, the company irked the EU regulators when it attempted to take control of the supervisory board of MAN before the deal received clearance. However, the group, which is the largest carmaker in Europe, dismissed plans to put several of its executives to the board of MAN after the European Commission stated that the endeavor would breach EU merger rules.

According to one of the sources, the Commission is expected to clear the deal with no concessions necessary, says Autonews. September 26 has been set as the deadline for the EU executive's decision. In 2008, Volkswagen won EU approval to buy Swedish truckmaker Scania AB after the regulator found no competition concerns during a preliminary review.

MAN would be the Volkswagen's second major industry holding next to Scania. In July, Volkswagen secured a 55.9 percent share of MAN. It forecasted that a truck alliance may save it as much as 1 billion euros or $1.45 billion in annual costs including outlays on purchasing and development. Volkswagen is aiming to be the largest truckmaker in Europe, rivaling Daimler AG and Volvo AB.

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