German truck maker MAN is pressing ahead with its £6.4 billion takeover bid for Swedish rival Scania despite the Scania board rejecting the takeover offer.
Håkan Samuelsson, chief executive officer of MAN, said: “This combination will deliver significant value to both Scania and MAN shareholders. The enlarged group will be able to increase its competitiveness, while also securing jobs in Germany and Sweden. The combination of two successful companies will be positioned to grow faster from a position of strength.
A deal would make the group Europe’s largest manufacturer of heavy commercial vehicles.
Scania, has resisted bids in the past – notably from Swedish rival Volvo – arguing that there are few economies of scale in the truck business. It has two major shareholders, Volkswagen, which has about 34 per cent of the shares and the Wallenberg family. It is understood that both groups are looking for a higher offer for their shares.
It has also been suggested that, in a second stage of the deal, MAN might take over Volkswagen’s own truck building activities.
Samuelsson knows the Scania business well, having been a senior manager there for many years before joining MAN. The two companies have also stood out against the move by the rest of the truck industry to embrace SCR technology to meet Euro 4 emission regulations.
They argue that it is better to have an engine that runs clean in the first place using EGR technology. The SCR system allows the engine to put out a lot of pollutants which are cleaned up by squirting urea into the exhaust.
The move is also likely to spark speculation over other mergers and alliances in the truck market.