“For some time Scania and MAN have investigated different projects in the industrial area, mainly related to the commercial vehicles, which would make it possible for the two companies to profit from synergies in research and development, manufacturing and sourcing,” Scania executives stated regarding the matter.
No final decision has been reached yet, as the two truckmakers have a number of issues regarding market share and different legal problems. The two companies need to work together but keep their brand identity, so as not to influence each other’s market value. “This process has shown that a full realization of potential synergies requires a closer cooperation by combining the two companies, while maintaining the unique brand values of the respective company.”
Scania did not reveal any other information, believing that will influence the progression of the ongoing talks.
“Both parties are focused on creating value for their shareholders and other stakeholders and are pursuing this with mutually friendly intentions,” MAN official were quoted as saying. “At the same time, both sides are committed to maintaining the operating businesses and the unique brand values of the respective companies. This would be the basis for any possible option pursued by MAN.”
MAN’s stock rose to its highest level in two and a half years on the Frankfurt exchange, as the company that would result of the merger would overtake Volvo AB and Daimler AG as the largest maker of heavy trucks and buses in Europe. Currently Volkswagen owns 46 percent of Scania and 29.9 percent of MAN.
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