MAN is Europe's third-largest truck firm

The sum paid and terms of the deal have not been revealed, but Volkswagen said it had no plans to buy MAN outright.

Last month, MAN tried to buy Swedish truckmaker Scania - in which VW has an 18.7% stake - but its bid was rejected.

Volkswagen has indicated that it would consider integrating its own Brazilian truck business into a three-way partnership with MAN and Scania.

Consolidation

"In principle there is a high degree of potential for synergies between MAN and Scania," said Volkswagen.

"In order to realise these quickly, it is essential that the two management teams works in a co-operative environment."

But a hostile takeover would not encourage this, VW said.

In September, Scania rejected a 9.6bn euro bid from MAN on the grounds that it did not reflect the true value of the firm.

Analysts are expecting consolidation in Europe's truck sector to allow firms to be able to compete better at a global level.