VW Now Clear To Takeover Swiss Truck-Maker Scania

June 14, 2008 8:35 a.m. EST

Berlin, Germany (AHN) - The European Commission has given the green light to Volkswagen's planned takeover of Swedish vehicle maker, Scania, saying a merger would not constitute unfair competition in the region.

The EC ruled that the core business of the two vehicle makers do not overlap - Scania does not build passenger cars and light commercial vehicles, while VW manufactures car brands such as Audi, Bentley and Skoda.

In March, Volkswagen bought out the stakes of Investor AB and the Wallenberg Foundation in Scania, raising its stake hold to 68.6 percent of voting rights and 37.73 percent of capital rights.

The competition commission added that VW's minority and non-controlling stake in bus maker MAN is no cause for concern.