Last Updated: 03/03/2008  11:43

Volkswagen takes control of Scania

Volkswagen will take majority control of Swedish truck maker Scania in a $4 billion deal announced today.

The move to buy out Sweden's Wallenberg family ends a stalemate over the future of the Swedish truckmaker since it rejected a hostile takeover offer early last year from German rival MAN, in which VW owns 30 per cent.

The two sides had tried since to agree on a friendly deal.

Volkswagen will pay 200 Swedish crowns per Scania A share - a 17 per cent premium to Friday's closing price - for a total of 26.94 billion crowns ($4.36 billion) to raise its voting stake in Scania to 69 per cent from 38 per cent. The deal is still subject to regulatory approval.

Scania shares rose on news of the deal and were trading up 2.3 per cent at 9.21am. Volkswagen shares were trading up 0.1 per cent in an otherwise weaker German blue chip index, while MAN shares surged 4.8 per cent.

MAN's hostile €10 billion-plus takeover bid for Scania, made late in 2006, had sparked opposition from the Swedish truckmaker's independent chief executive, Leif Ostling. Both Volkswagen and the Wallenbergs rejected the deal.

The deal was scrapped in January 2007, and the three large shareholders of Scania resolved to work towards a friendly merger.

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