VW considers IPO for truck division

German report notes move to prepare for major investment

VW considers IPO for truck division
Matthias Müller has had a change of emphasis


A German media report that Volkswagen Group is considering listing its truck and bus division has garnered further headlines in Europe.

German business newspaper Handelsblatt kicked off with a weekend report stating VW intends to list the division containing Scania and MAN "as soon as possible", with an initial public offering (IPO) that could be worth as much as €10 billion (A$15.9 billion).

The newspaper quotes an unnamed VW official as saying investment banks would be employed to find likely investors, with the stock to start trading in about a year’s time.

News organisation Bloomberg quotes the trucks unit as saying it was moving towards becoming a corporation in its own right but options would be kept open.

This was followed by a Reuters report quoting VW CEO Matthias Müller as effectively confirming that internal talks were on, saying the idea of a spin-off listing was a decision that "we have to deal with permanently" but was part of a group-wide realignment.

It was also reported that negotiations were already underway with the owning entities and unions.

Media commentary notes that such a move echoes indication that Daimler is looking to loosen the ties binding its structure, though it was looking at options other than a full spin-off of its trucks division, amongst others.

If it comes to fruition, it will be a major change of tone from the position Müller presented in mid-2016 when he emphasise everything other than a separate corporate entity.



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