In this paper we will discuss about the business deal made by Volkswagen AG (VW). In March 2008, VW disclosed its plans to acquire Scania AB, a Swedish truck manufacturer. The deal amount would reach upto 4.37 million US dollars.
VW wanted to expand their heavy truck business in several countries like Brazil and Russia. Moreover, the company aimed to grow rapidly through this deal to face the challenges from some big names in the truck industry, like, AB Volvo, Daimler AG.
In 2008, VW, Volkswagen AG, an international brand portal providing several informations about vehicles, announced that it would own Scania AB, a truck manufacturer of Sweden. The whole business deal would be worth 4.37 billion dollars.
Objectives of the Deal:
The Volkswagen AG wanted to consolidate its position in the global truck industry.
Through the deal, VW aimed to grow quickly so that it could challenge the other big guns like, AB Volvo, Daimler AG etc.
The deal could advance the chances of merger between VW and MAN AG. However, VW held almost 30% stake in MAN AG.
VW wanted to spread its heavy truck business in some big developing countries like Brazil, China, Russia.
VW would capture 68.6% shares in Scania AB.
Volkswagen was ready to purchase Scania AB’s stake from the Investor AB that had been controlled by the Wallenberg Foundations and the Wallenberg family of Sweden.
Wallenberg Foundations would receive gain 994 million euros from this deal.
The Swedish investor, Investor AB, would receive almost 2.85 billion dollars or 17.6 billion Swedish kronor from this deal.