Swedish Scania says looking at merger with Germany's MAN
Swedish truckmaker Scania and Germany's MAN, both of which are partly owned by Volkswagen, are considering merging, Scania said in a statement on Monday.
Scania said it has investigated with MAN collaboration possibilities which has "shown that a full realisation of potential synergies requires a closer cooperation by combining the two companies," while maintaining the two separate brands.
"At this stage no decision has been taken, as there are a number of outstanding issues of commercial and legal nature. A decision can be made only when these issues have been resolved," added Scania.
Volkswagen owns 45.7 percent of Scania and nearly 30 percent of MAN. MAN also has a 13.4 percent staken in MAN.
Shares in MAN jumped by more than five percent in early trading in Frankfurt to 86.98 euros while the DAX slid 0.45 percent overall to 6.704.16 at 0855 GMT.
Meanwhile, shares in Volkswagen slid 0.18 percent to 113.80 euros and in Stockholm shares in Scania dipped 0.60 percent to 145.20 kronor.
© 2010 AFP