Categories: BusinessLatest

Volkswagen Truck Unit Traton Finalises US$3.7bn Navistar Acquisition

Volkswagen AG’s truck unit Traton SE has agreed to pay about US$3.7 billion for the outstanding shares of US truck maker Navistar International Corp in a deal announced on Saturday that would extend its reach in North America.

Finalisation of the deal comes after Traton said on October 16 it had agreed to raise its bid for Navistar to US$44.50 per share, up from US$43, as it closed in on an acquisition that would create a global manufacturer.

The agreement which brings Navistar together with the MAN, Scania and Volkswagen trucks brands is in tune with trends in the truck industry which has been seeking ways to share the costs of developing low emissions technology.

Traton already holds a 16.7% stake in Navistar and at the increased offer price Traton would be paying about US$3.7 billion for the shares in Navistar it doesn’t already own, valuing the US business as a whole at around US$4.4 billion.

Major shareholders in Navistar including Icahn Capital LP and MHR Fund Management LLC have agreed to vote in favor of the deal, the US truck maker said in a separate statement

The Volkswagen group will give Traton a loan of 3.3 billion euros, repayable over 12-18 months, to fund the deal.

Follow us on:

AriseNews

Recent Posts

President Tinubu Orders Probe Into Prosecution Of Minors From #EndBadGovernance Protests

President Tinubu has ordered an investigation into the arrest, prosecution of minors involved in #EndBadGovernance…

7 hours ago

Musk’s Lawyer Defends $1M-a-Day Giveaway, Denies Illegal Lottery Claims

Musk's $1M giveaway is under legal scrutiny in a Pennsylvania court case as it targets…

7 hours ago

Badenoch Unveils Shadow Cabinet with Jenrick As Shadow Justice Secretary, Patel As Shadow Foreign Secretary

Kemi Badenoch has appointed former rivals Jenrick, Patel, and Stride to senior roles in her…

7 hours ago

Boeing Workers Vote On New Contract To End Seven-Week Strike

Boeing workers voted Monday on a new contract to end a seven-week strike

7 hours ago

Former Delta Governor Ifeanyi Okowa Arrested By EFCC For Alleged N1.3 Trillion Diversion

EFCC has arrested ex-Delta governor Ifeanyi Okowa for alleged misuse of oil derivation funds, diverting…

8 hours ago

Search for Missing Persons Continues After Deadly Valencia Floods

Barcelona faces severe flooding as search and rescue efforts continue.

10 hours ago