VW's Traton reaches accord with US Navistar trucks
FRANKFURT, Oct 17: Volkswagen's heavy trucks unit Traton said on Friday it had reached an agreement for a $3.7 billion takeover of US truck maker Navistar after slightly boosting an initial $43-per-share offer.
Chasing US market share as it goes up against European rivals such as Daimler and Volvo, Traton -- parent to the MAN and Scania brands -- said it had come to an "agreement in principle" at $44.50 per share.
"We are pleased to have reached agreement in principle for a transaction after intensive negotiations with Navistar. We are looking forward to completing our due diligence and obtaining the necessary approvals in respect of this exciting deal," said Traton CEO Matthias Gruendler.
Traton and Navistar, with respective workforces of some 80,000 and 15,000, have since 2017 been cooperating on technology and purchasing.
Navistar, which says it is the leader in US school buses, boasted 2019 revenue of $11.3 billion on unit sales of 106,500.
Traton, also behind the Volkswagen "Caminhoes e Onibus" brand in Latin America and Africa, last year sold 242,000 units for $26.9 billion euros ($31.5 billion) in revenue.
The agreement comes after months of haggling, as Traton in January proposed $35 per share before raising in September to $43, an offer rejected by Navistar.
Traton then gave Navistar -- whose biggest shareholder is billionaire Carl Icahn -- until Friday to accept or else see the offer withdrawn. -AFP