We first reported on Volkswagen's intent to acquire a larger stake in MAN – the truck, bus and turbodiesel engine manufacturer that is not only the oldest company listed on the German stock exchange, but itself also one of the largest.
The move has now received European regulatory approval, clearing the way for Volkswagen's commercial vehicle division to increase its stake in MAN SE from 30.5 percent to 53.71, while increasing its voting rights to a majority 55.9 percent. The acquisition is expected to reduce overhead and redundancies between MAN, Scania and Volkswagen's own truck operations, opening the door for the larger company to become the largest truck manufacturer in the European market. Follow the jump for the official announcement.
The Volkswagen Group has reached a further important milestone on its way towards an integrated commercial vehicles group consisting of MAN, Scania and Volkswagen. Volkswagen AG has received approval from the EU Commission to increase its holding in MAN SE in line with the mandatory offer. This was announced by Europe's largest automaker in Wolfsburg on Monday.
The Volkswagen Group assumes that the remaining outstanding completion conditions will be fulfilled during the coming weeks.
Following receipt of all the necessary regulatory clearances and subsequent settlement of the mandatory offer Volkswagen will hold a total 55.90 per cent of the voting rights and 53.71 per cent of the share capital of MAN SE. Substantial synergies can be realized through a closer cooperation of MAN, Scania and Volkswagen in the fields of procurement, development and production.
This announcement includes forward-looking statements about Volkswagen Group and MAN Group. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Volkswagen Aktiengesellschaft cautions you that forward-looking statements are not guarantees of the occurrence of such future events or of future performance and that in particular the actual results of operations, financial condition and liquidity, the development of the industry in which Volkswagen Group and MAN Group operate and the outcome or impact of the acquisition on Volkswagen Group and/or MAN Group may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. Any forward-looking statements speak only as at the date of this announcement. Except as required by applicable law, Volkswagen Aktiengesellschaft does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.