Volkswagen investors cheer Man approval

SHARES in Man SE surged more than seven per cent yesterday after German carmaker Volkswagen secured EU approval to buy the truckmaker.

Volkswagen, Europe’s largest car maker, clinched a 55.9 per cent stake in Munich-based Man in July, allowing it to compete with rivals Daimler and Volvo.

Volkswagen’s shares also rose 6.7 per cent yesterday after news of the approval.

The European Commission said in a statement that it did not see any major competition issues with the deal.

“The Commission’s investigation showed that European heavy truck and bus markets would remain competitive after the merger,” the EU executive said.

“The merged entity will continue to face strong competition from other well established manufacturers such as Daimler, Volvo, Iveco and DAF trucks and Daimler, Volvo, Iveco, Solaris and VDL in buses,” it said.

Meanwhile Volkswagen part-owner Qatar said it is looking for more investment opportunities in Germany.

The head of Qatar’s sovereign wealth fund, which also owns a stake in Porsche, said yesterday it hopes to strengthen its position in the country.