Aeolus Truck & Driver News
Traton ups its bid for Navistar
Aeolus Truck & Driver News
Traton has upped its offer in its bid to buy Navistar outright – thus establishing its desired foothold in the huge North American truck market.
Volkswagen’s heavy truck business, which has ambitions to head off rivals Daimler and Volvo to become the world’s No. 1 truckmaker, is now offering $US3.6billion (around $NZ5.41bn) for 83% of Navistar.
It already owns a 17% stake in the truckmaker, which builds Internationals – having bought into the US company three or four years ago.
In January it offered $US2.9bn ($NZ4.4bn approximately) for the balance of the shareholding, but US financial media reported that negotiations with the biggest stakeholders in Navistar had then been suspended because of the COVID-19 pandemic.
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Traton has upped its offer in its bid to buy Navistar outright – thus establishing its desired foothold in the huge North American truck market.
Volkswagen’s heavy truck business, which has ambitions to head off rivals Daimler and Volvo to become the world’s No. 1 truckmaker, is now offering $US3.6billion (around $NZ5.41bn) for 83% of Navistar.
It already owns a 17% stake in the truckmaker, which builds Internationals – having bought into the US company three or four years ago.
In January it offered $US2.9bn ($NZ4.4bn approximately) for the balance of the shareholding, but US financial media reported that negotiations with the biggest stakeholders in Navistar had then been suspended because of the COVID-19 pandemic.
Traton CEO Matthias Grundler now says: “We continue to believe in the compelling strategic benefits that a complete merger of Traton and Navistar would produce.
“This is why we are re-emphasising our interest in the transaction in spite of the COVID-19 pandemic.”
Navistar says that its board of directors and management team “are committed to exploring all avenues to maximise value.”
It will, it adds, carefully review the revised proposal from Traton in consultation with its advisers “to determine the course of action that it believes is in the best interests of the company and its stakeholders.”
Navistar’s most recent financial report revealed that its truck sales were down almost 50% due to the impact of COVID-19 on the US economy.
Volkswagen’s heavy truck business, which has ambitions to head off rivals Daimler and Volvo to become the world’s No. 1 truckmaker, is now offering $US3.6billion (around $NZ5.41bn) for 83% of Navistar.
It already owns a 17% stake in the truckmaker, which builds Internationals – having bought into the US company three or four years ago.
In January it offered $US2.9bn ($NZ4.4bn approximately) for the balance of the shareholding, but US financial media reported that negotiations with the biggest stakeholders in Navistar had then been suspended because of the COVID-19 pandemic.
Traton CEO Matthias Grundler now says: “We continue to believe in the compelling strategic benefits that a complete merger of Traton and Navistar would produce.
“This is why we are re-emphasising our interest in the transaction in spite of the COVID-19 pandemic.”
Navistar says that its board of directors and management team “are committed to exploring all avenues to maximise value.”
It will, it adds, carefully review the revised proposal from Traton in consultation with its advisers “to determine the course of action that it believes is in the best interests of the company and its stakeholders.”
Navistar’s most recent financial report revealed that its truck sales were down almost 50% due to the impact of COVID-19 on the US economy.
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