Scania said it has investigated with MAN collaboration possibilities which has "shown that a full realisation of potential synergies requires a closer cooperation by combining the two companies," while maintaining the two separate brands.
"At this stage no decision has been taken, as there are a number of outstanding issues of commercial and legal nature. A decision can be made only when these issues have been resolved," added Scania.
Volkswagen owns 45.7 percent of Scania and nearly 30 percent of MAN. MAN also has a 13.4 percent stake in MAN.
Shares in MAN jumped by more than five percent in Frankfurt to €87.69 while the DAX rose 0.75 percent overall to 6,785.11 in late afternoon trade.
Meanwhile, shares in Volkswagen rose 2.46 percent to €116.80 euros and in Stockholm shares in Scania climbed 2.20 percent to 146.00 kronor.