VW’s Traton makes Navistar takeover bid


Buyout would add weight to battle with global rivals Daimler and Volvo

VW’s Traton makes Navistar takeover bid
Traton CEO Andreas Renschler

 

Volkswagen heavy vehicle concern Traton, the parent of MAN and Scania, is offering US$2.9 billion (A$4.3 billion) to add the rest of Navistar to its portfolio.

Already having a 17 per cent stake in the International parent firm, Traton now offers US$35 (AU$52) per share for the NYSE-listed truckmaker, what it says is a 45 per cent premium on Navistar’s most recent closing share price and 19 per cent above its 90-day volume weighted average.

Traton says it and Navistar have benefitted from a strategic alliance since 2017 in bringing about increased purchasing power and the integration of new technologies.

Its "leading position" in the European and South American markets and Navistar’s presence in North America "would create a leader with global reach and complementary capabilities". 


Traton's portfolio shake-up last year was seen as a precursor to this bid


"Over the past three years, we have benefitted from a highly collaborative and productive strategic alliance with Navistar," Traton CEO Andreas Renschler says.

"As the market continues to evolve, we believe there are compelling strategic and financial benefits to a full combination of Traton and Navistar. 

"The proposed transaction would create a leader in commercial vehicles with global scale and a strong portfolio of leading brands and cutting-edge products, technologies and services while delivering immediate and substantial value to Navistar stockholders."

Traton points to a potential enhanced ability to meet the demands of new regulations and rapidly developing technologies in connectivity, propulsion and autonomous driving. 

It main competitors to industry leaders Daimler and Volvo

It expects that the proposed transaction could be closed by the end of 2020, subject to approval and due diligence.

 

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