Navistar reaches definitive agreement for merger with Volkswagen’s truck unit

Navistar has reached a definitive merger agreement with Volkswagen’s truck unit to sell the rest of its outstanding shares in a transaction that is expected to close next year.

The agreement will have Volkswagen’s heavy-truck unit Traton SE acquiring Navistar for a total of $3.7 billion. Traton announced last month that it would be willing to purchase the remainder of Navistar stock that it did not already own for $44.50 per share.

Traton currently has a 16.7% stake in Navistar.

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Talks between the two companies about a possible acquisition started in January when Traton made an original offer to purchase those shares for $35 per share in cash. That offer increased to $43 per share in September.

However, in October, representatives of Navistar said they were prepared to move forward with the deal for $44.50 per share in cash. That deal was supported by two of Navistar’s largest shareholders, American businessman Carl Icahn and MHR Fund Management.

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About the Author

Hasan Karim

Hasan Karim, covers all things business in Clark and Champaign counties. Has been a reporter since 2017. His focus is primarily on job creation and covering the largest companies in the area. He also reports on the local healthcare industry as well as local government.