Scania and MAN discuss a merger, while Vollkswagen looks on with interest
By Rob McKay | November 16, 2010
Industry
consolidation moves are afoot in Europe as Scania and MAN acknowledged yesterday they were in merger talks.
The advice came as German news weekly Der Speigel reported at the weekend that Volkswagen, which has a controlling stake in Scania and a minority holding in MAN, aims use the link to try to overtake global front-runners Daimler and Volvo.
“For some time Scania and MAN have investigated different projects in the industrial area, mainly related to the commercial vehicles, which would make it possible for the two companies to profit from synergies in research and development, manufacturing and sourcing,” Scania says.
“This process has shown that a full realisation of potential synergies requires a closer cooperation by combining the two companies, while maintaining the unique brand values of the respective company.
“At this stage no decision has been taken, as there are a number of outstanding issues of commercial and legal nature. A decision can be made only when these issues have been resolved.
“Scania will not comment on the subject while the discussion is still ongoing. Further announcements will be made when appropriate.”
MAN also spoke of synergies and “closer industrial cooperation”.
“Both parties are focused on creating value for their shareholders and other stakeholders and are pursuing this with mutually friendly intentions,” the German manufacturer says.
“At the same time, both sides are committed to maintaining the operating businesses and the unique brand values of the respective companies.
“This would be the basis for any possible option pursued by MAN.”
As with its carmaking tilt at world leader Toyota, Volkswagen has held a long-term desire to merge Scania and MAN with a view to eventually taking the global top spot.
By some measures – even with a successful merger – Scania and MAN will need to double production to take on the industry leaders, but it could lay claim to being Europe’s top builder.