Europe’s largest car manufacturer announced the news at the beginning of the week that their offer is in line with regulations. The main reasoning behind the approval? The EU said despite the proposed merger of the two giant German automotive companies, there would still be “strong competition” for the company within the appropriate type of market. But will the competition remain as strong as the EU expects? Volkswagen will now clearly have a strong foothold in the heavy duty truck. Many expect the company to blow any competition with ease in the upcoming years, given the power they are about to gain.
Volkswagen were said to have made a mandatory offer which was triggered by raising their percentage within the company in May.
This puts an end to the recent “spat” between the EU authorities and Volkswagen. When the proposed takeover was first initiated a few months ago, the EU Commission didn’t give the green light. They were unhappy with the German company for not getting the appropriate authority of the combined takeover first before appointing members to its supervisory board. Things have certainly made a huge turnaround in such a short space of time.
This news falls into place with the company’s plans to spend $85 Billion and become the world’s largest automobile manufacturer. If everything goes according to plan, Volkswagen will be the Europe’s biggest heavy trucker developer and the second biggest bus manufacturer. After already holding a major percentage in MAN SE before bidding to take the company over completely, the Volkswagen Group also has control of Scania AB, a Swedish manufacturer of heavy duty trucks. At present Daimler hold the number one position for being Europe’s number one truck maker.
Shares for MAN SE have risen for the very first time in 10 months following the takeover offer by Volkswagen. Volkswagen shares themselves have also risen as a consequence.
This represents a huge change in the automotive market as a whole. With Volkswagen clearly making steps to step their game up in walks of the industry, can any other company rival their current growth spurt?