MAN withdraws hostile takeover bid for Scania

German truck giant MAN has ended a lengthy takeover battle with Swedish truck manufacturer Scania by withdrawing its €10.2bn (£6.7bn) takeover bid.

MAN says that talks will be ongoing with Scania and its shareholders to try to exploit possible synergies between the companies. Scania has welcomed MAN’s move and states that it is open for discussion as long as it is built on industrial and commercial logic.

The hostile bid, set to run out on 31 January, was rejected by Scania and its two main shareholders Investor and Volkswagen. Volkswagen, also a major shareholder in MAN, is looking to combine with the truck manufacturers in a three-way merger to strengthen its Brazil-based South American truck business.

MAN is currently seeking approval of the Swedish Securities Council to withdraw the offer as it is clear the conditions set out in the offer will not be met by 31 January.