EU Rejects Volvo-Scania Bid to Wed

March 22, 2000 10:16 AM, EST

A possible blockbuster partnership involving two Swedish truck manufacturers was rejected by regulators while another one was forged between U.S. and Italian automotive companies in Europe.

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On March 14, the European Union blocked the Volvo-Scania merger, Bloomberg News reported. The 20-member commission cited concerns that granting approval to the deal would create a combined company owning a dominant share of the truck market in Sweden and the United Kingdom.

However, Volvo AB enjoyed a silver lining as its takeover bid was rejected and the curtain went up on a global episode of “Who Wants to marry a Billionaire Truckmaker?” The company’s stock registered its biggest gain in eight months, climbing 7% and giving the firm a market value of $11.9 billion, according to Bloomberg News.

In August, Scania gave in to Volvo’s advances by agreeing to a $5.9 billion marriage ("Volvo-Scania is Global Deal," 8-16, p. 3). The deal would have created the world’s second biggest truck manufacturer behind DaimlerChrysler.

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