Volkswagen AG truck unit TRATON SE has submitted a proposal to acquire the outstanding shares of Navistar International Corporation for about $3.7 billion, according to the company’s press release. The deal’s finalization comes after Trato agreed to increase its bid for Navistar from $43 to $44.5 per share. 

  • The Volkswagen Group will grant a loan of 3.3 billion euros to Traton, payable over 12-18 months, to finance Navistar acquisition.
  • The acquisition, which brings Navistar together with the MAN, Scania, and Volkswagen truck brands, is in line with the industry trends, seeking ways to share the costs of developing low emissions technology.
  • Traton already holds 16.8% of shares in Navistar, and at the revised offer price, the company will be valued about $4.4 billion in its U.S. business as a whole.
  • Navistar’s major shareholders, including Icahn Capital LP and MHR Fund Management LLC, have agreed to vote for the acquisition deal.

Volkswagen stock is gaining. VOW3 is up 2.66%