Price agreement sees Traton on verge of Navistar buy


Traton's US ambitions almost realised as parties reach in-principle deal

Price agreement sees Traton on verge of Navistar buy
Matthias Gründler

 

Traton is a step closer to adding Navistar to a portfolio that also includes MAN and Scania after both agreed on a buyout price.

Volkswagen’s commercial vehicle arm and the American truck manufacturer settled on a US$44.50 (A$63.17) price per Navistar share by Traton, which already holds a 16.8 per cent stake.

At that rate, Traton would pay about US$3.7 (A$5.25) billion for Navistar, valuing it as a whole at around $4.4 (A$6.25) billion, reports indicate.

Traton had upped its offer from US$35 a share to US$43 last month before getting over the line with this latest bid.


More on the protracted Traton-Navistar negotiations, here


The deal would ultimately cement Traton’s North American expansion ambitions and aid its market battle against Daimler and Volvo.

"We are pleased to have reached agreement in principle for a transaction after intensive negotiations with Navistar," Traton CEO Matthias Gründler says in a statement.

"We are looking forward to completing our due diligence and obtaining the necessary approvals in respect of this exciting deal in order to welcome the new Traton family member."

The deal still has hurdles to pass, including due diligence, merger terms and related transaction documents and approval by the executive bodies of both companies.

"There is no assurance that the parties will reach agreement on definitive transaction documentation, or as to the terms thereof or that any transaction, if such agreement is reached, will ultimately be consummated," the Traton statement reads.

 

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