VW Gets Scania Stake in $4.37 Billion Deal
Mar 10, 2008 12:34 PM
Volkswagen AG took control of Swedish truck maker Scania AB in a $4.37 billion deal, which could lead to a broader consolidation in the global truck industry.
Creating a larger truck company could make VW a credible global competitor to Daimler AG and AB Volvo.
VW will hold 68.6 percent of the voting shares.
“This step underlines the importance Volkswagen attaches to its participation in Scania,“ said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG said: “Scania is a strong premium brand which has a prosperous future. We will support the management of Scania and its team in executing the strategy of profitable growth. Investor and Volkswagen have worked successfully together for eight years and during this time Scania has achieved record sales and profit. Both parties believe that this transaction is in the best interest of Scania and Sweden.”
Volkswagen sees a very bright future with strong growth for Scania. Volkswagen will keep and develop Scania as a strong premium brand and will exercise its influence in the company with the objective of maximizing the long-term value for all shareholders.
Volkswagen intends to maintain the headquarters and the engineering competence centers in Södertälje.
“We will continue to act as a responsible shareholder in the company in line with Swedish corporate governance practice and ensure that Scania’s Board of Directors is comprised of strong and well qualified members including strong independent representation”, Volkswagen’s Chairman commented
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