Published On: Sat, Nov 14th, 2020

TRATON to take full ownership of US truck manufacturer Navistar for $3.7bn

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TRATON acquisition of Navistar : TRATON, a subsidiary of German automotive giant Volkswagen Group, has agreed to take full ownership of US truck manufacturer Navistar International in a $3.7 billion all-cash deal.

Presently, TRATON, which is a commercial vehicle manufacturer, holds a 16.7% stake in the truck maker and will pay $44.5 per share to acquire the remaining shares.

Navistar International functions as a holding company whose subsidiaries and affiliates manufacture International brand commercial trucks, diesel engines, and IC Bus brand school and commercial buses. One of the company’s affiliates also offers truck and diesel engine service parts, while another affiliate provides financing services.

The transaction follows the alliance between TRATON and Navistar that began in March 2017. The alliance is said to have helped the companies in increasing their purchasing scale and also the integration of new technologies.

Persio Lisboa – Navistar President and CEO, commenting on TRATON acquisition of Navistar, said: “This transaction builds upon our highly collaborative and successful strategic alliance and further enhances the growth trajectory of the combined company, while delivering immediate and substantial value to our shareholders.

“We look forward to continuing to work with the TRATON team to create opportunities for our employees and provide an outstanding experience for our customers and dealers through best-in-class products, services and technologies.”

TRATON acquisition of Navistar

TRATON acquisition of Navistar. Photo courtesy of Navistar, Inc.

The combination of TRATON’s presence in Europe and a considerable footprint in South America and Navistar’s complementary footprint in North America is expected to help build a global company that can benefit from improved brand performance, increased innovation, and also industry-leading capabilities.

Comments on TRATON acquisition of Navistar

Commenting on TRATON acquisition of Navistar, Matthias Gründler – TRATON CEO, said: “Together, we will have an enhanced ability to meet the demands of new regulations and rapidly developing technologies in connectivity, propulsion and autonomous driving for customers around the world.

“Navistar has been a valuable partner, and we are confident this combination will deliver compelling strategic and financial benefits, create enhanced opportunities for both Navistar and TRATON, and best position us to drive sustained value in the evolving global commercial vehicle industry.”

TRATON acquisition of Navistar, which is subject to Navistar’s shareholder’s approval, regulatory approvals, and other customary closing conditions, is targeted to be wrapped up in mid-2021,

Navistar’s major shareholders – Icahn Capital and MHR Fund Management have agreed to support the deal.

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