Prime Mover Magazine

Traton offers $4.3B to purchase Navistar International

Global truck group, Traton SE, has reportedly put in an unsolicited cash offer worth $4.3AUD billion to buy Navistar International Corporation.

It is understood that Navistar was carefully reviewing the proposal in which Volkswagen's commercial vehicle subsidiary Traton, the umbrella company that includes both Scania and MAN, would acquire Navistar International Corporation for $35 a share.

Traton is already a 17 per cent stakeholder in Navistar International after it paid $256USD million for its stake in 2017.

The move overnight boosted the Navistar share price which was trading at $24 a share on the New York Stock Exchange before news broke of the offer.

Details have not yet emerged on what the deal would mean for the International truck lineup and Navistar diesel engine group. 

With a further six months of downturn ahead in the US manufacturing economy some industry pundits have anticipated Navistar would represent a good value buy this year.

As Volkswagen aims to offset manufacturing costs the deal looks like a good fit. 

Navistar, along with engine specialist Cummins and supplier Meritor announced thousands of job cuts late last year.

“There can be no assurance that any negotiations between Navistar and TRATON regarding this proposal will take place, and if such negotiations do take place, there can be no assurance that any transaction with TRATON will occur or be consummated,” the Illinois-based truck manufacturer said in a statement.

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