VW to take full control of truck maker Scania
13 May 2014
German carmaker Volkswagen AG (VW) today said that it would take full control of Swedish truck maker Scania after minority shareholders accepted its 200 Swedish crowns ($30.48) per share offer.
Earlier this month, VW had extended its offer after it received only 88.25 per cent of Scania shares, short of the 90 per cent it had set as the acceptance threshold for all the shares of Scania.
VW had refused to raise its offer, which is 36-per cent more than Scania's closing price to 21 February, the day before it had tabled its offer.
In February, VW, which holds 62.6 per cent of Scania and 89 per cent voting rights, had offered to take full control of the company after tabling a €6.7-billion ($9.21 billion) bid. (See: VW to buy out minority shareholders of Swedish truck maker Scania for $9.21 bn)
But two of Scania's minority shareholders, pension fund Alecta had rejected the offer as being too low, while Insurance firm Skandia wanted the company to remain independent.
Although the offer had received a positive response from the Swedish Shareholders' Association, the IF Metall trade union at Scania in Stockholm had expressed apprehension as it felt that it would lose its influence if VW were to take full control of Scania.
VW had said that it would go ahead with its buyout only if it was able secure 90 per cent of Scania, a threshold required under Swedish law.
Alecta, which holds 2.04 per cent in Scania, has now reversed its earlier stand and today said it would accept the offer.
''After renewed talks with Volkswagen, it is our conclusion that a higher bid price cannot be achieved,'' Alecta said in a statement today. ''Even though the bid still does not fully reflect Scania's long-term value, we believe it is acceptable.''
The Munich-based car maker today said that it has received 90.5 per cent of Scania's shares after 27.5 per cent of the company's stockholders had accepted its offer.
Remaining shareholders have until Friday to accept the bid. After that, VW intends to seek compulsory acquisition of the remaining stock and delist Scania from the Stockholm Stock Exchange.
VW, Europe's largest automaker, decided to take full control of Scania and merge it with its Commercial Vehicles business and other truck division MAN SE, which VW took full control last year after having acquired a majority stake in 2011.
"We can now take the next logical and consistent step in our strategy to strengthen the operating integration of Scania, MAN and VW commercial vehicles," the company said in a statement.
Scania is one of the world's leading manufacturers of trucks and buses for the heavy transport industry, and of industrial and marine engines.
Employing around 41,000 people in around 100 countries, Scania generated a net income of SEK 6.2 billion in 2013 on revenues of SEK 86.8 billion.
While its research and development activities are concentrated in Sweden, its production centres are located in Europe and South America.
