DBRS: Volkswagen unchanged

DBRS said that Volkswagen AG's ratings are not immediately affected by the company's increase in its holdings in the ordinary shares of MAN SE to 30.47% from 29.9%.

Subsequently to the increase VW is required to make a mandatory offer to all shareholders of MAN to acquire their shares in MAN, the agency said. However, notwithstanding this required purchase offer by German takeover law, it is not anticipated that the company will acquire all the ordinary shares in MAN in the near future.

In addition to MAN, VW also owns a majority 71.8% stake in Scania AB, which is consolidated by the company and is among its portfolio of nine brands, the agency added. VW has targeted increased cooperation and higher synergies of these companies in conjunction with its own trucking operations.

However, these efforts thus far have been significantly constrained by antitrust restrictions, DBRS noted. VW's increased position in MAN, with merger control clearance, is therefore a necessary step with respect to this targeted higher cooperation among the trucking entities.

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