Volkswagen gets 34% of Scania for $1.6B

Volkswagen AG's US$1.6 billion purchase of 34% of Swedish truckmaker Scania is a coup for investment company and Scania owner Investor, coming shortly after the European Commission said no to a merger between Scania and rival Volvo for antitrust reasons. Volvo was prepared to pay US$36 a share for Scania when Scania's stock price was at US$29. But Volkswagen's offer was US$42.53, and the purchase is not expected to be seen as anticompetitive. Sources say Investor management was extremely dissatisfied with Volvo Chief Executive Leif Johansson's handling of the Volvo-Scania merger application to the European Commission. Investor stood to lose US$460 million as a result of the deal being quashed. Johansson told WAW that "there was very little we could have done differently," to win approval. Volkswagen is now the biggest owner, followed by Volvo with 30.6%.