MAN's EM Expansion Offers New Model For Chinese Producers

Germany's MAN has stepped up its expansion into emerging markets with the purchase of a 25% stake in Hong Kong-based Sinotruk, as it rushes tap higher growth markets in the face of a 45% fall in European heavy truck sales in 5M09. MAN will pay EUR560mn (US$788mn) for the stake, a 21% premium to its do-day average trading price. Although China's commercial vehicle segment has not benefited from government incentives in the same way as the passenger vehicle segment, with sales falling by 0.5% year-on-year (y-o-y) in H109, it still offers more opportunities than Europe, where heavy truck sales are forecast to fall by 50% this year.

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