Traton clinches deal to buy remaining Navistar shares for $44.50 each

Nov. 07, 2020 10:57 PM ETVolkswagen AG (VWAGY), NAVNAV, VLKAF, VWAGYBy: Carl Surran, SA News Editor
  • Volkswagen's (OTCPK:VWAGY) Traton truck unit says it finalized an agreement to pay ~$3.7B for all outstanding shares of Navistar International (NYSE:NAV).
  • Traton said on Oct. 16 it would raise its offer for Navistar to $44.50/share from $43, which was well above its $35 bid in January before the pandemic hit the U.S. and Europe.
  • Traton, which already holds a 16.7% stake in the U.S. truck manufacturer, says the deal has been approved by its executive and supervisory boards.
  • Major Navistar shareholders including Icahn Capital and MHR Fund Management have agreed to vote in favor of the deal.
  • "The truck cycle has likely bottomed, and negotiations with Traton could be fruitful for Navistar," Stephen Simpson wrote in an analysis published in September on Seeking Alpha.

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