Europe largest automaker Volkswagen AG announced Monday that it will make a mandatory takeover offer for the remaining shares in German truck maker MAN SE it does not hold already.
The German car maker has long wanted to create Europe’s biggest truck maker by combining Scania, which it has a controlling stake in, with Man, in order to compete with world leader Daimler and No 2 Volvo, but it has been hampered by anti-trust issues and resistance from Scania.
“To enable a more in-depth cooperation among MAN, Scania and Volkswagen, merger control clearance and further increase of Volkswagen’s holding in MAN are required,” VW said in a statement.
Earlier this month, VW announced plans to 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 stake rose above 30 percent.
Analysts are unfazed by VW’s ambition, saying the large number of projects means the risk of any one having a major impact on the company’s shares in the event of a problem or delay is reduced.