VW Offers to Buy Remaining Shares in Scania

Volkswagen AG is offering €6.7 billion to acquire the 10.8% of commercial truckmaker Scania AB it doesn't already own.

VW's tender offer is 200 kronor (about €22.28) per share for the outstanding 298.9 million shares.

The German carmaker has been investing in Scania since 2000. It says it wants to acquire the company outright to overcome legal restrictions that prohibit it from further coordinating operations with its own truck business and those of MAN SE, the German truckmaker VW took control of last year.

VW estimates that fully integrating the three truckmaking businesses will contribute at least €650 million in operating profit in 10-15 years.

The acceptance period for VW's offer will begin on March 17 and end on April 25. The company says it will pay for the stock purchase with cash from its automotive division and by issuing as many as €2 billion in new preference shares.

The offer is contingent upon VW acquiring more than 90% of the outstanding shares.