AVN 67.54 No Change ▼ 0.00 (0%)
BOP 9.35 No Change ▼ 0.00 (0%)
CHCC 139.27 No Change ▼ 0.00 (0%)
DCL 10.89 No Change ▼ 0.00 (0%)
DGKC 112.94 No Change ▼ 0.00 (0%)
EFERT 66.44 No Change ▼ 0.00 (0%)
EPCL 45.64 No Change ▼ 0.00 (0%)
FCCL 20.50 No Change ▼ 0.00 (0%)
FFL 15.93 No Change ▼ 0.00 (0%)
HASCOL 15.78 No Change ▼ 0.00 (0%)
HBL 139.52 No Change ▼ 0.00 (0%)
HUBC 76.40 No Change ▼ 0.00 (0%)
HUMNL 8.09 No Change ▼ 0.00 (0%)
JSCL 27.18 No Change ▼ 0.00 (0%)
KAPCO 28.53 No Change ▼ 0.00 (0%)
KEL 3.89 No Change ▼ 0.00 (0%)
LOTCHEM 12.30 No Change ▼ 0.00 (0%)
MLCF 41.45 No Change ▼ 0.00 (0%)
OGDC 98.35 No Change ▼ 0.00 (0%)
PAEL 36.09 No Change ▼ 0.00 (0%)
PIBTL 13.27 No Change ▼ 0.00 (0%)
PIOC 98.87 No Change ▼ 0.00 (0%)
POWER 9.38 No Change ▼ 0.00 (0%)
PPL 86.77 No Change ▼ 0.00 (0%)
PSO 209.04 No Change ▼ 0.00 (0%)
SNGP 57.36 No Change ▼ 0.00 (0%)
STPL 12.67 No Change ▼ 0.00 (0%)
TRG 50.01 No Change ▼ 0.00 (0%)
UNITY 21.51 No Change ▼ 0.00 (0%)
COVID-19 TOTAL DAILY
CASES 327,895 832
DEATHS 6,736 9
Business

VW raises Navistar bid to $44.50/share to clinch trucks deal

  • VW's Traton to pay $3.7 bln for rest of Navistar.
  • Deal values Navistar at $4.4 bln.
  • Deal hinges on due diligence, agreement of terms.
17 Oct 2020

Volkswagen's trucks business Traton said on Friday it had agreed to raise its takeover bid for Navistar International Corp to $44.50 per share from $43, closing in on a deal that would extend its reach into North America.

A successful merger would combine the MAN, Scania and Volkswagen trucks brands with Navistar to create a global manufacturer, at a time when the industry is seeking ways to share the costs of developing low emissions technology.

At $44.50 per share, Traton would pay about $3.7 billion for the shares in Navistar it doesn't already own, valuing the US business as a whole at around $4.4 billion.

"Traton SE and the US-American truck manufacturer Navistar International Corporation, in which Traton already holds a stake of 16.8%, have today reached agreement in principle that Traton will acquire by merger all shares in Navistar not already held by Traton, at a price of $44.50 per Navistar share," Traton said in a statement.

A deal hinges on finalising due diligence, agreeing merger terms and related transaction documents and approval by the executive bodies of Navistar and Volkswagen, Traton said.

"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," Traton cautioned.

The announcement follows hours of negotiations, with Navistar's board saying the offer would need to be raised to $44.50 per share to win shareholders' backing, hours before Traton's $43 per share offer was due to expire.

Traton had already raised its initial $35 per share offer last month.

Navistar shares were last up 22.9% at $43.53. Traton shares ended up 1.6% at 18.02 euros.

Traton has struggled to win over billionaire activist investor Carl Icahn, whose fund held a 16.8% stake in the US truck maker as of June 30, according to Refinitiv Eikon Data.

Icahn and two other activist funds, Mark Rachesky's MHR Fund Management and Gabelli Funds, together own about 40% of Navistar's shares, according to Refinitiv data.