VW seeks full control over German truck maker MAN

Wed Jan 9, 2013 1:50pm EST
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FRANKFURT (Reuters) - Volkswagen's (VOWG_p.DE: Quote) moved to tighten its grip over MAN (MANG.DE: Quote) on Wednesday, saying it wished to take full control over the Munich-based truck maker.

Volkswagen said would now seek a so-called domination and profit and loss transfer agreement, a move to give it full strategic and financial control over MAN, in which it has a 75.03 percent stake.

Based on the closing price on Xetra DAX the remaining shares would cost Volkswagen at least 2.96 billion euros ($3.86 billion). The 90 euro share price in Frankfurt reflects a 3.17 billion euro price tag.

"The planned step is a further milestone on the road to creating an integrated commercial vehicles group," the company said in a statement.

A domination and profit transfer agreement requires 75 percent of shares and gives the acquirer access to the liquidity of the company it bought.

Volkswagen already has such an agreement in place with Audi, its listed luxury brand.

The move shows that Volkswagen's appetite for consolidating a global empire which includes motorcycles, cars and trucks, remains undiminished.

In November, Volkswagen topped up its war chest by raising 2.5 billion euros which it said would help strengthen its balance sheet following the purchase of Italian motorcycle company Ducati, and Porsche sports cars.

Volkswagen currently is the home to 12 brands, including Seat, Skoda, Bugatti and Bentley.   Continued...

Logo of German carmaker Volkswagen, is pictured at the IAA truck show in Hanover, September 18, 2012. Picture taken September 18. REUTERS/Fabian Bimmer