with ERF's parent firm'
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• by Sally Nash
Speculation is growing that MAN is poised to take over Canadian manufacturer Western Star, which owns ERF.
As CM went to press irdus
try sources were convinced the two firms were close to agreement and that a deal could be in the bag by Christmas.
, MAN is understood to have set its sights on Western Star as a way of gaming a foothold in the North American market. It is also keen not to be left behind as manufacturers continue to grow through acqulsition and mergers, such as the recent Volvo/ Scania tie-up.
The fate of ERF is unclear but CM'S sources suggest it is likely
to be sold as a separate entity.
However, MAN and Western Star immediately rubbished the reports, writing them off as mere "rumour".
David Burke, executive vicepresident at Western Star, says: "There are many rumours about us which have been blown out of all proportion." As evidence of this he points to one story which was circulating about a possible takeover by DalmlerChrysler just three weeks ago; this turned out to be false.
However, it is true that Western Star—a small but growing player—is keen to form alliances and make acquisitions in order to expand, adds Burke.
In 1999, 6,899 new Western Star trucks were sold, with more than 5,700 units on order for next year.
In the same period ERF sold 2,887 trucks and had 355 units on order.
MAN also threw cold water over the takeover suggestion; ERF boss John Bryant was unavailable for comment.
In August MAN said it would consider a merger with another truck firm (CM 26 August-1 September). At the time, tie-ups with Iveco and Renault VI were considered likely options, and there was talk of a passible takeover by Volkswagen.