Like in the Second World War

The conflict between MAN and Scania [1] concerns also the control over an important sector of the Swedish automobile industry and, therefore, a central element of the still independent industrial production of the country. This branch of industry employs a tenth of all Swedish employees and accounts for approx. 13 per cent of the nation's total exports. The manufacturers of heavy-duty trucks (over 16 tons) have special significance: in this segment Volvo holds first place as world market leader, Scania is in fourth place. Whereas these two enterprises are still in Swedish hands, important sectors of the motor industry are, in the meantime, under foreign control. Volvo sold its passenger car section to Ford in 1999, one year later, the passenger car division of the Saab AB, went entirely to General Motors. MAN's first takeover proposition, in mid-September, valued at 9.6 billion Euros was not only rejected by the Scania management, but also by the large shareholder investor AB. Investor AB is a member of the Wallenberg family, one of the wealthiest and most influential dynasties of the Stockholm establishment. "The Wallenbergs have, for past 150 years, been a central part of recent Swedish economic history", wrote the German press about MAN-Corp.'s opponent.[2]

Stakes worth Billions

Since the refusal of the first proposal, the struggle for the takeover became a contest with stakes worth billions. First, Volkswagen, Europe's largest automobile company, obtained decisive influence for itself: It acquired a 15% share in MAN, valued at approximately 1.5 billion Euros, is thereby the largest shareholder with both competitors and took the reins in hand for the struggle for the takeover.[3] Volkswagen then endorsed the fusion to a common enterprise, in which the Volkswagen truck section was also to be integrated, and demanded the check minority shares.[4] With this two-pronged spearhead Volkswagen issued the ultimatum that MAN Corp. and Scania reach a consensual solution, otherwise, it was said, hostile measures will be considered. Shortly thereafter, Volkswagen increased its holdings in MAN to approximately 20% and notified the Federal Cartel Office of its intention of acquiring up to 30%.[5] In Stockholm, Volkswagen's maneuvers are attributed to German government circles. The German Land of Lower Saxony is among the significant Volkswagen shareholders. In the leadership of Volkswagen's management are important German trade unionists, who have close links to the ruling government parties, particularly the SPD, for which corporate expansion of the company (not only with Volkswagen) is constitutive.

Germany Inc.

An amicable agreement between MAN Corp./(Volkswagen) and Scania is unforeseeable and is made more difficult though continued German equivocations. Thus the MAN Corp. bought shares in Scania for about 1.1 billion Euros and - behind Sweden's back - rose to become the third largest shareholder. Scania countered by strengthening the check minority, to make it more difficult for Volkswagen and MAN, who now dispose of over half of the voting shares, to complete the takeover. Even the proposal by the German competitors - increased to 10.3 billion Euros - was refused. Scania classified the assault as hostile and criticized the "aggressive" line of action taken by MAN.[6] In response Sweden threatened to buy out MAN [7] - a reaction of desperation, judges the German corp. It is confident that it is "under the protection of Germany Inc., the network of relations between politics, trade unions and industry" [8], was aptly confirmed by the MAN executive committee.

Blitzkrieg

With the approach of the original deadline, December 11, for a decision on the MAN Corp.'s proposal, the conflict over the takeover continued to intensify. In a meeting with investors, analysts and media, Scania chairman of the board, Leif Oestling, classified the MAN Corp.'s procedure as "unusually crude" and accused the MAN management of "methods like in the Second World War". "The Germans are experts in the blitzkrieg. But they have also lost some of them", Oestling is quoted as having said. He compared his own role in this conflict with that of Winston Churchill, British Prime Minister in the Second World War. "Yes he was very clever. He said: I can promise you only blood, sweat and tears. I told the people here something similar."[9]

Drawing the Line

This political analogy provoked a reaction from German Ambassador to Sweden, Wolfgang Trautwein. Trautwein admonished the Swedish government, in reference to the Scania manager's ("very remarkable choice of words") and called for drawing the line on the historical memory of German conquests (which were part of "the first half of the last century").[10] Berlin's judgement brought results - and demonstrated at the same time that the boss of Sania, Oestling, had hit the bulls-eye. Not to lose sympathetic considerations of the mighty Germans, Oestling had to apologize. The Swedish government added, in a tormented statement, that it hopes that the truck manufacturer Scania will not fall into "German hands". In Stockholm, the Prime Minister, Fredrik Reinfeldt, lent the raging battle for hegemony of the intra-European economy, an accentuated national tone: "what belongs to Swedish owners, should remain in Swedish possession."[11]

Ruling Power

Reinfeldt did not mention the fact that that Swedish proprietors also gladly take over foreign possessions, for example, substantial parts of the European energy industry, in which Vattenfall AB [12], has, in the meantime, become the fifth-largest provider. Therefore the reason behind the German/Swedish contention is not so much the change of proprietor, but the ruthlessness with which it is to be achieved and the political sum total that this makes in Berlin's European economic takeovers. They nourish the fear (and not just in Stockholm) of a complete loss of sovereignty, alongside Germany's simultaneous rise to become the determining political and militarily ruling power with global ambitions.

Optimistic

The contest for Scania, with its stakes worth billions, will continue into the new year: to await for the EU commission's legal competition examination, MAN Corp. extended the deadline to January 31, 2007, for acceptance of its billions proposal for buying out its Swedish competitor,. The German corporation remains "optimistic" that the disputed takeover will still be successful.[13]

[1] see also Verdaulicher Brocken and Master Plan
[2] Mehr sein als scheinen; Frankfurter Allgemeine Zeitung 16.09.2006
[3] VW übernimmt Regie im Lkw-Übernahmekampf; Die Welt 05.10.2006
[4] VW will mit MAN-Beteiligung Dreier-Allianz erzwingen; Reuters 04.10.2006
[5] Anteil aufgestockt. VW drängt MAN und Scania; Handelsblatt 27.10.2006
[6] MAN betreibt feindliche Übernahme von Scania; Tagesspiegel 13.10.2006
[7] Scania schlägt zurück. MAN wird vom Jäger zum Gejagten; Handelsblatt 16.11.2006
[8] Samuelsson vertraut auf die Deutschland AG; Handelsblatt 17.11.2006
[9] "Der Deutsche ist ja Experte im Blitzkrieg"; Manager Magazin 07.12.2006
[10] Kritik an "Blitzkrieg"-Äußerung; Frankfurter Allgemeine Zeitung 08.12.2006
[11] Stockholmer Regierung will Scania in schwedischen Händen sehen; Der Standard 07.12.2006
[12] Europas ledande energibolag - Vattenfall; www.vattenfall.se
[13] Mehr Zeit zum Überlegen; Manager Magazin 07.12.2006