Traton SE to acquire Navistar International

navistar

Via its subsidiary Traton SE, Volkswagen is acquiring the United States-based Navistar International.

The Volkswagen subsidiary recently announced it plans to acquire all shares of Navistar at a price of US$44.50 per share, equaling about $3.7 billion. Before the acquisition plan, Traton SE held 16.8 per cent of share of the company. 

“We are pleased to have reached agreement in principle for a transaction after intensive negotiations with Navistar,” said Matthias Gründler, chief executive officer of Traton SE.

“We are looking forward to completing our due diligence and obtaining the necessary approvals in respect of this exciting deal in order to welcome the new Traton family member.”

International Truck is Navistar’s flagship vehicle brand and offers a complete lineup of integrated vehicles ranging from class 4 to 8. The truck brand is backed by a dealer network of about 1,000 locations in the United States, Canada, Brazil and Mexico, and offers a complete lineup of integrated vehicles.

While International Truck was created in 1902, Navistar’s history dates back to 1831, when Cyrus McCormick developed the first truly practical mechanical reaper.

Alongside International Truck, Navistar also manufactures light, medium and heavy-duty diesel engines, the IC Bus brand and Navistar Defense — a complete portfolio of both tactical and commercial off-the-shelf military vehicles.

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Traton SE, the manufacturer of the Scania and Man trucks, formed a strategic alliance with Navistar in 2017, to increase purchasing power and the integration of new technologies.

When the acquisition is complete, the combined company would have an enhanced ability to meet the demands of new regulations and rapidly developing technologies in connectivity, propulsion and autonomous driving.

As well, combining Traton’s position in the European and South American markets with Navistar’s presence in North America would create a leader with global reach and complementary capabilities.

The acquisition remains subject to finalization of due diligence to the satisfaction of Traton, agreeing on the conclusion of a merger agreement and related transaction documents and the approval of the transaction by the executive bodies and committees of Traton and Volkswagen, as well as the board of directors and the shareholder meeting of Navistar.

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