To mark another milestone in the bid of Volkswagen AG for global dominance, the company is set to make an offer for truck manufacturer MAN SE in the coming days. This is one of the offers in a series of plans for the company to become the No. 1 vehicle manufacturer in the world by 2018, outperforming Japan-based Toyota Motor Corp.
During the early parts of this month, the company has opened a $1 billion assembly plant in the United States. It has also been venturing in China, which is the biggest vehicle market in the world.
On the other hand, the alliance with Japan-based Suzuki has yet to progress. Moreover, the company is still working on a merger with Porsche. In addition, chairman Ferdinand Piech is eyeing Alfa Romeo of Fiat S.p.A.
Furthermore, Volkswagen is interested in combining MAN with Sweden-based truck manufacturer Scania in order to develop the biggest truck maker in Europe that will outperform the dominant player in the world – Daimler AG.
However, analysts are not perturbed by the ambitious plans of VW, stating that the various projects undertaken will mean that the risk of anything making a great impact on the shares of the company if a delay or problem occurs is lessened.
Earlier, the company has disclosed plans that it will make a low cash bid of 95 euros per share to buy out MAN, valuing the company at 13.8 billion euros ($19.7 billion), after its share rose above 30 percent.
Under the rules of Germany, if the offer sparks little interest from investors, VW will be allowed to buy shares in the market and obtain regulatory approval for closer cooperation between Scania, in which it holds a 45 percent stake, and MAN.