VW Claims Victory
Volkswagen majority shareholder in MAN
Approval by merger control authorities paves the way for MAN ´s close cooperation with Volkswagen and Scania
All completion conditions fulfilled, tendered shares transferred
Substantial purchasing, production and R&D synergies
Clear commitment by Volkswagen to employees, locations,
business areas and independent brands
The majority takeover of MAN SE by Volkswagen AG is complete. The only remaining condition for completion of the mandatory public offer made to MAN SE shareholders by Volkswagen AG has been fulfilled following clea-rance of the transaction by the Chinese merger control authorities on 3 No-vember 2011. Prior to this, the transaction had already been approved by the European Commission, as well as numerous other authorities.
All shares tendered to Volkswagen AG by MAN SE shareholders in res-ponse to its offer of 31 May 2011 have now been transferred to the new majority owner. Volkswagen now holds a total of 55.90 percent of the voting rights in MAN and 53.71 percent of its share capital. This clears the way for close cooperation between MAN, Volkswagen and Scania.
Deeper cooperation between MAN, Volkswagen and Scania is aimed at sustaining the growth path pursued by the Munich-based vehicle and engi-neering specialist and promoting ongoing expansion of its position as one of the world ´s leading transport-related engineering enterprises. Together, the companies will create one of the world ´s leading suppliers of commer-cial vehicles.
Following conclusion of the mandatory offer, Georg Pachta-Reyhofen, Chief Executive Officer of MAN SE, stated that, "Today we are opening up a new chapter in the 253-year history of the company, which is set to conti-nue. At the same time, we shall retain our special MAN identity marked by innovation, the art of engineering and international positioning. The success achieved by MAN, Volkswagen and Scania is based on identical values. We are therefore all convinced of the industrial logic behind close coopera-tion and are taking an open and committed approach to the new partnership."
Closer cooperation will form a basis for exploiting extensive synergy poten-tial. The companies involved anticipate that synergies amounting to at least€200 million per annum can be achieved, mostly in the procurement sector. In the long term, substantial additional potential lies in intensive cooperation in the production sphere, as well as in the field of research and develop-ment.
The partnership with the Volkswagen Group also offers attractive prospects for MAN employees. Volkswagen ´s clear commitment to MAN ´s brands, business areas, locations and employees is a definite sign of the stability, sustainability and esteem on which our mutual cooperation will be based. No personnel cuts are planned in the course of the amalgamation process. MAN ´s headquarters will remain in Munich, all the company ´s sites should be retained unchanged and the independence of its brands preserved.
How to become an owner-operator
Being in business as an owner-operator is the most popular way to run a commercial vehicle in the UK. According to the Department for Transport 44% (41,300) of the 95,000 O-licences held in the UK are for one vehicle.
Setting up in business as an owner-operator is not cheap. An investigation by Commercial Motor last year discovered that the initial outlay to drive a commercial vehicle on the road as a business is £31,151.
CM estimates you would be working for an average wage of £4,740 for eight weeks of driving. We also estimates that any owner-operator will need to cover their own costs for eight weeks based on 60 day invoice terms from customers.
Expense - Cost
HGV Licence - £1,500
Driver CPC - £600
Three months of vehicle renta - £4,700
O-Licence application - £250
O-Licence issue fee - £391
Vehicle insurance (six months) - £2,110
Breakdown/ repair costs - £530
Miscellaneous overheads - £1,800
Fuel (eight weeks estimated usage) - £6,430
Minimum financial standing - £8,100
Total outlay - £26,411
Wages (average for eight weeks driving) - £4,740
Total Expenditure - £31,151
Source: Road Haulage Association and Freight Transport Association.
Figures accurate as of July 2010.
The first thing you would need is an HGV drivers licence – the average cost is between £1,000 and £1,500. Driver CPC training costs from £120 to £35 a day on a public course. You need to complete five days to meet the 35 hours required total. This could total anything from £175 to £600.
An application for any type of O-licence, be it restricted, standard national or standard international is £250 but that is before you take into account the licence issue fee of £391 (which has to be renewed every five years at £391 a time).
Anyone setting up as an owner-operator in business also needs £8,100 as proof of financial standing. If you want to run and additional vehicle the applicant must have a further £4,500 per vehicle in the bank too. A restricted O-licence holder must prove it has £3,100 per vehicle in the bank.
Miscellaneous costs include:
- Insurance (six months could cost up to £2,110)
- Money to pay for services and repairs (approximately £530 would just about cover any outlay in the first eight weeks, according to Road Haulage Association estimates)
- Overheads (such as renting a site to park your truck, could set you back some £1,800 for the first eight weeks).
The base estimate for running a 44 tonne artic is: gross milage of 70,900 miles per annum, or 1,400 miles per week. Therefore the first eight weeks of operation, using an economy rate of 57.4 pence per mile, fuel costs are £6,430.