Volkswagen AG, Europe’s largest automaker and the second in the world in 2013, has moved to extend the time limit of its 6.7 billion-euro ($9.3 billion) bid to acquire full control of the Swedish truck manufacturer Scania.
Just as two minority shareholders finally decided to accept the proposal and sell their stakes, Volkswagen actually fell short of the 90% Swedish law threshold – the German carmaker only achieved an 88.25 % of investors. The law mandates the bidder to achieve a 90% mark in order to force the remaining owners to sell their stakes.
VW announced in a statement it’s not going to increase on its 200 kronor ($30.44) per share offer, which was 36% better than what the truck maker traded on the bid day. The carmaker decided instead to extend the offer until May 16.
“We are confident that during the extended acceptance period, we will meet the necessary acceptance level for this transaction,” Chief Financial Officer Hans Dieter Poetsch said in the statement. “This would be a milestone in the process of completing our integrated commercial-vehicles group.”
VW so far has only a 62.64 % controlling stake in Scania AB, while its MAN division is under a domination agreement, which prevents the group from achieving an integrated heavy-trucks division. VW aims to ensure further cooperation between Scania, Man and its light commercial-van unit in order to reach annual profit gains of 650 million euros.