VW Boosts MAN Stake

Volkswagen AG has increased its voting stake in MAN AG to 75.03% from 73.8%, thus clearing the way for VW to seek full control of the Munich-based truckmaker.

Under German law, the owner of more than 75% of a company can ask shareholders to approve a domination agreement, which gives the owner full access to the company's finances. A domination pact would require VW to offer to buy all outstanding MAN shares at a fair market value.

VW calls the move its next step toward an integrated commercial vehicles group. The auto giant has been seeking for six years to merge its own truck operations with those of MAN and Scania AB, in which it also holds a controlling stake.

VW CEO Martin Winterkorn says MAN will retain "operational autonomy," and its power-engineering unit, which makes large diesel engines and other equipment, will remain a "solid part" of MAN's business. VW says it will keep "all options open to further shape" an integrated truck group.

As part of a big VW management shakeup unveiled last weekend, Leif Ostling will trade his job as Scania CEO on Sept. 1 for a seat on VW's management board as head of the commercial vehicles unit. The company expects Ostling to forge closer ties among the three truck groups to take advantage of synergies and spur global growth.

VW says MAN and Scania could save more than €200 million per year from shared purchasing and product development.