“VDL’s Strategic Acquisition: A Spotlight on Van Hool’s Takeover

This article was last updated on April 8, 2024

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The Upcoming Business Endeavor of VDL

It is undeniable that the business landscape is ever-evolving. Industrial group VDL seems prepared to adapt to these changes with its interest to acquire part of the bankrupt Belgian bus manufacturer Van Hool. Crucial negotiations over the German automotive manufacturer, Schmitz Cargobull, also mean that Van Hool is poised for a significant transformation. Van Hool’s touring coach domain is the intended target of VDL’s acquisition. Owning a robust portfolio of electric buses, coaches, and trucks, the Dutch enterprise is a substantial player in the industry. Amidst ongoing negotiations, offerings from VDL and Schmitz Cargobull are currently under consideration. A final say on the takeover would be made after a thorough review of the proposed conditions over the coming weeks.

Workforce Repercussions

The unavoidable side effect of this corporate restructuring is the potential reduction of Van Hool’s employee strength. Barring any unforeseen circumstances, 2,500 jobs in Belgium may be on the line. However, VDL aims to soften the blow, diligently planning to absorb between 300 and 600 personnel from the existing Van Hool workforce. Furthermore, Schmitz Cargobull also plans to retain approximately 350 employees in its operational base.

The Challenge of Foreign Market Competitions

Van Hool once stood as fierce competition to VDL. Now, it is facing a severe financial ordeal, exacerbated by the plunge in the travel industry due to the COVID-19 pandemic. Its struggles are further magnified by stiff competition from China, according to VRT, Belgian public broadcaster. Van Hool revealed its plans of restructuring, which regrettably would incur significant job losses. Fast forward to four weeks, and Van Hool seems to have reached a dead end, succumbing to bankruptcy.

VDL’s Financial Profile

Although VDL is keen on acquiring parts of Van Hool, its fiscal health has taken a hit. In 2020, it suffered a significant decline in profits, with the net result falling sharply from 298 million to 82 million euros, as reported by L1 News. VDL Nedcar in Born was mainly to blame for this dip. The car factory stopped an operation from March after failing to secure a new client, resulting in 3,500 job losses.

The Bright Side

Despite the gloomy atmosphere, the news of Van Hool’s proposed acquisition offers a silver lining. Clarity in their employment status would be a relief to their workforce, even though the news is daunting. The capture of even fewer jobs than initially projected is a severe blow to the employees.