MAN’s cash and shares offer implied a premium of up to 39% over Scania’s average share price over the three months before the bid was announced.

The bid was also rejected by the Swedish Investor Group, part of the Wallenberg Group, owned by the Wallenburg family which controls, directly and indirectly, some 29% of Scania’s voting stock. MAN also held talks with Volkswagen, which controls 34% of Scania voting rights. Analysts believe Volkswagen wishes to retain its interest in Scania as the European truck sector seeks consolidation in order to compete better globally. Both MAN and Scania lack a significant presence in the large North American and Asian markets.MAN saw the consolidation as a way of achieving cost savings of at least €500m per year within three years of a deal, although it said no factory closures were planned.

MJ Information No: 22311