Volkswagen’s trucking business, Traton, said Friday that it had agreed to raise its bid to buy Navistar from $ 43 to $ 44.50 per share and signed an agreement to expand its expansion into North America.
A successful merger will create a global manufacturer as the industry combines MAN, Scania and Volkswagen truck brands with Navistar to find ways to share the cost of developing low-emission technologies.
Traton is valued at $ 4.4.50 per share, paying about $ 3.7 billion for Navistar shares it doesn’t yet own, and valuing its entire US business at about $ 4.4 billion.
“Traton SE and Navistar International Corporation, a U.S. truck maker in which Traton already holds a 16.8% stake, today agreed to merge with Traton to acquire all of Traton’s stake in Navistar. We did. $ 44.50 per Navistar share. “
The deal depends on a due diligence final decision, an agreement on the terms of the merger and related transaction documents, and approval by Navistar and Volkswagen’s executive body, Traton said.
“There is no guarantee that the parties will reach an agreement on the final transaction document, and there is no guarantee that the transaction will eventually be completed with respect to the terms or if such an agreement is reached,” Traton warned.
The announcement follows hours of negotiations, with Navistar’s board raising the offer to $ 44.50 per share to gain shareholder support hours before Traton’s $ 43 per share offer expires. He said it was necessary.
Traton had already raised the first $ 35 per share offer last month.
Navistar’s share price rose 22.9% to $ 43.53. Traton shares rose 1.6% to € 18.02.
According to Refinitiv Eikon Data, Traton is struggling to acquire billionaire activist investor Carl Icahn, whose fund has a 16.8% stake in U.S. truck maker as of June 30. I had it.
According to Refinitiv data, Icahn and two other activist funds, Mark Ratchesky’s MHR Fund Management and Gaberi Fund, own approximately 40% of Navistar’s stake.