Wednesday, January 9th, VW announced it plans to take full control over MAN.
VW declared that it will seek to sign with MAN a domination and profit and loss transfer agreement, which will give the German automaker full financial and strategic control over the truck maker, in which VW has 75.03% stake. For the remaining of the share VW would have to pay between 2.96 billion euro and 3.17 billion euro, depending on the shares’ price.
“The planned step is a further milestone on the road to creating an integrated commercial vehicles group,” the company said in a statement.
Such a domination and profit agreement requires 75% of shares and offers the acquirer access to the liquidity of the company it purchased. VW has a similar agreement with luxury brand Audi, another part of VW’s plan to create a global empire including cars, trucks and motorcycles. Last year the German automaker bought the Italian motorcycle company Ducati and Porsche sports car automaker. Currently VW has 12 brands, among which Skoda, Bentley, Bugatti and Seat.
Back in July, MAN’s CFO Frank Lutz said that a domination agreement between the two companies wouldn’t bring any additional synergies and in September, VW board member Leif Oestling declared that a closer integration between different trucks brands was unlikely.