Volkswagen’s takeover of MAN clears last snag

Volkswagen cleared a final hurdle in its takeover of MAN, the German truckmaker, when China’s competition authority signalled its approval, paving the way for Europe’s biggest carmaker to build a trucking empire to rival Daimler and Volvo.

VW said the Chinese ruling marked the completion of all regulatory clearances necessary for settlement of its mandatory offer.

Following settlement on November 9, Volkswagen will hold 55.9 per cent of the voting rights and 53.7 per cent of the share capital of MAN, thereby adding another marque to its broad stable of brands, which includes Audi, Bentley and Seat.

VW reiterated that closer co-operation between MAN, Volkswagen and Scania, the Swedish truckmaker that it majority owns, would enable it to realise substantial synergies in procurement, development and production. VW has previously quantified these annual synergies at €200m ($276m).

VW launched a mandatory €95 per ordinary share offer for MAN at the end of May after its shareholding rose above 30 per cent. The European Commission signalled its approval of the deal in September.

The EU’s executive had in June forced VW to delay plans to nominate three new MAN supervisory board members until it had received this merger control clearance.