After a battle of wills, that saw Volkswagen not raising its 200 kronor offer to acquire the rest of the stock of Swedish truck maker Scania, but rather choosing to extend the deadline of the bid, the world’s second biggest carmaker managed to secure the necessary stock to go through with the purchase.
Volkswagen AG, which through various methods already had a controlling stake worth 62.6% of Scania, announced the 200 kronor ($30.46) per share bid, worth 6.7 billion-euro ($9.2 billion), in February, and needed – according to Swedish law – at least 90% of the total shares in order to force the remainder to go through with the sale.
“We can now take the next logical and consistent step in our strategy to strengthen the operational integration between Scania, MAN and Volkwagen commercial vehicles and create a leading commercial-vehicles group,” said Chief Executive Officer Martin Winterkorn.
While initially Swedish pension fund Alecta rejected the proposal, it has since reconsidered and Volkswagen now has a 90.47 % shareholder acceptance, which means the bid would most likely go through.
Volkswagen has been pushing through a reorganization of commercial plans, after failing for years to reach a deeper integration among the various divisions, which are formed from Scania, MAN and the Volkswagen trucks unit.
Via The Wall Street Journal
by Aurel Niculescu
) - Tuesday, May 13th, 2014 - filed under Industry
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