Translated material
Swedish wall
Scania refused to merge with the German MAN
The Swedish truck manufacturer Scania refused to voluntarily merge with the German concern MAN, and therefore it actually began a hostile takeover procedure.The Swedish group's board of directors on Sunday considered MAN's proposal, which involved paying 9.6 billion euros in cash and shares of the combined company for 100% of Scania shares. The board of the concern asked both of its major shareholders - the German Volkswagen and the Swedish Wallenberg family - to refuse such a proposal. And the shareholders acted in accordance with this recommendation. In a statement yesterday, Scania's supervisory board said that the decision to reject the offer of the German concern MAN on the current terms was made unanimously.
According to industry analysts, the current takeover battle for Scania is only just getting underway. MAN expects that they will be able to win over the largest shareholder of the Swedish concern - Volkswagen. If he takes part in the deal, his stake in the new manufacturing conglomerate could be 18.7%. But the question remains open about the future role of the Wallenberg family, which owns a total of 16.1 percent stake in Scania. Family-controlled shareholder Investor AB rejected MAN's offer on the grounds that it "does not reflect the full value and potential of Scania." Meanwhile, MAN managers managed to agree with the French Renault on the purchase of its stake (2.86%) in the Swedish concern.
The main “engine” of the fight for the takeover of Scania is considered to be the head of the board of MAN, Hakan Samuelsson. “The new production group will be stronger and more competitive and will provide jobs in Germany and Sweden,” he said. In total, both enterprises employ 80 thousand employees, produce 124 thousand trucks annually, and turnover reaches 22 billion euros. Reuters cites data from the German auto industry association VDA, according to which the new group could control about 28% of the European heavy-duty truck market, ahead of Volvo with 25% and DaimlerChrysler with 20%.
Experts say Mr Samuelsson will not give up his idea of creating Europe's largest truck maker. Even though the demand for them has recently begun to decline. People who know the MAN chief well claim that he is “stubborn as a moose.” The comparison with the inhabitant of the northern forests is not accidental. The fact is that the 55-year-old head of MAN is a Swede who has worked for 33 years in a row in various management positions at Scania. In recent years, in his homeland, Hakan Samuelsson headed development and production - and was firmly considered the future head of the company. But six years ago, the “stubborn moose” defected to German competitors and in January 2005 became the head of the board of the concern in Munich. “It was the hardest decision I have ever made,” he says of his move to MAN. It seems that in such a roundabout and, as it turns out, rather thorny way - through an enemy takeover - Hakan Samuelsson dreams of returning to Sweden again. And there, if the purchase of Scania does work out for him, he, as once expected, will become the head of the concern - but much more powerful.