Brussels green-lights VW's MAN plans
German car maker gets go-ahead to create new truck empire
The European Commission has given car manufacturer VW approval for its proposed takeover of MAN trucks – a major step towards the German car maker’s plans to create a truck empire to rival Volvo and Daimler.
The Commission had, in June, put the brakes on plans by the car maker to merge Scania, in which it holds around 72% of the voting shares, with MAN, forcing VW to withdraw plans to appoint CEO Martin Winterkorn, CFO Hans Dieter Poetsch and truck boss Jochem Heizmann to MAN’s board.
The announcement, made on Monday by the Commission in Brussels, opens the doors for VW to produce closer ties between Scania and MAN. VW had looked at acquiring a 35-40% stake in MAN, but the deal will see the company hold majority voting rights (56%) and share capital (54%) once complete.
Brussels said the proposal would not significantly affect competition because VW would face strong competition from other well-established manufacturers.