Volkswagen may soon realize its goal of fully controlling Swedish truck unit Scania. This comes as the carmaker disclosed that it already controlled 88.25 percent of Scania's equity and 95.81 percent of the voting rights, once the shares tendered for the SEK200 ($30.48) per share offer were included.
VW has set a 90-percent acceptance threshold for all shares in Scania and would extend the acceptance period until May 16 at 1500 GMT, after it initially ended April 25. VW said in a statement that it is confident that during the extended acceptance period, the necessary acceptance level would be met.
VW sees Scania's full integration into its fold as crucial for its bid establish a heavy-truck alliance between Scania, MAN SE and its own commercial-vehicles division -- allowing the Group to do business competitively against industry leaders Daimler AG and Volvo AB.
VW is seeking but struggling to replicate the success of its multi-brand management of passenger-car brands in its truck operations. While it has already invested billions of euros to take control of Scania and MAN, it gained limited financial gains as minority investors object to sharing technology that could hike earnings.
The buyout offer faced a big hurdle after Scania board members without direct links to VW remarked that the offer was too low and did not reflect Scania’s long-term potential of the truck unit.
VW has reiterated that it would not hike the offer price. Among those resisting the buyout offer are Swedish holding company Investor AB and the state AP4 fund. They, however, might change their decision after saying that they would review the offer documents anew. [source: Reuters]