Volkswagen is near hiring top banks for truck unit IPO
LONDON – Volkswagen is close to hiring banks and advisers to work on an initial public offering (IPO) for its heavy-truck division, according to people with knowledge of the matter.
Citigroup, Deutsche Bank, Goldman Sachs Group and JPMorgan Chase & Co are likely to win mandates as global coordinators for the share sale, the people said, asking not to be identified as the deliberations are confidential. Rothschild is acting as IPO adviser, the people said.
Representatives for VW and the banks declined to comment.
VW’s trucks business has a value of about €28.5-billion ($33.3-billion), according to Bloomberg Intelligence analyst Michael Dean. The IPO would generate funds for the division’s expansion plans, especially outside Europe, to challenge Daimler and Volvo AB in the global trucks market.
Shares of VW rose 0.5% to €147.76 at 10:13 a.m. in Frankfurt.
The German manufacturer intends to list shares in the truck unit – which has been renamed Traton – next year, but the timing will depend on market conditions, people with knowledge of the matter said last month. VW has said it will retain a majority stake in the business, which generated revenue of about €24-billion last year.
The IPO of the unit – which comprises the highly profitable Swedish Scania brand, Germany’s MAN truck and bus marque as well as a business in Brazil – marks the most significant structural shift for VW so far as it undergoes a major revamp. Since taking over the top job earlier this year, VW Chief Executive Officer Herbert Diess is pushing to accelerate efforts to make the world’s largest automaker less centralized and more agile by 2025 to tackle a seismic industry shift toward electric vehicles and new digital services.
German rival Daimler is adopting a new corporate structure as well that will grant its truck business more independence, but executives have remained tight-lipped so far about a possible IPO.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation