MAN-Scania Merger No Threat to Competition, EC Rules

A European Commission decision clears the way for Germany-based MAN AG’s planned acquisition of Scania AB, its Sweden-based competitor.

Though a merger would combine Europe’s two largest truck and bus manufacturers, EC Competition Commissioner Neelle Kroes says: “The proposed transaction would not significantly impede effective competition.”

The new entity would, Kroes adds, still face strong competition from a number of other important manufacturers such as DaimlerChrysler AG, Volvo AB, Iveco SpA and DAF Trucks N.V.

The proposed €10.3 billion ($13.6 billion) deal, which faces a Jan. 31 deadline, still must be approved by Volkswagen AG, a major Scania shareholder.