MAN Looking At Scania?

Posted on September 13, 2006

A week before the IAA show, Europe’s largest commercial vehicle exhibition, the rumor mill in the European truck market is suddenly working overtime. According to the Wall Street Journal, Germany’s MAN AG is considering a bid for Scania AB, a potential move to consolidate the European market for heavy commercial vehicles and diesel engines, according to people close to the matter, said the bylined article by Jason Singer and Stephen Power.

The reports adds another layer of speculation to a suddenly intrigue-filled European truck market. Last week. Volvo AB said it is also looking for acquisitions.

The Wall Street Journal article reports that Scania has a market value of about $9.6 billion. “It isn't clear if Scania would be receptive to any approach, these people said. A MAN spokesman didn't return calls seeking comment. A Scania spokesman couldn't be reached for comment,” the article said.

Adding fuel to the fire, MAN Chief Executive Hakan Samuelsson spent 23 years at Scania before joining MAN in 2000. Volkswagen AG holds about 34% of Scania, and 29% is owned by Swedish holding company Investor AB and foundations run by the Wallenberg family.