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. JEFF GUERINI/STAFF

Navistar has reached a definitive merger agreement with Volkswagen’s truck unit to sell the rest of its outstanding shares. JEFF GUERINI/STAFF
Business
By Hasan Karim
Nov 13, 2020
X

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.

ExploreCoronavirus: Downtown Springfield restaurant closes until after Thanksgiving

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.

ExploreClark County Law Enforcement Advisory Team announces members
In Other News
1
Intel remains committed to Ohio ‘Silicon Heartland’ despite company’s...
2
Retailers bank on Black Friday to energize bargain-hungry holiday...
3
Ohio retailers counting on big holiday sales with Black Friday start
4
Does Ohio need a paid family leave policy? New report says yes
5
EXCLUSIVE: Amazon considers building Ohio data center in Fayette County

About the Author

Follow Hasan Karim on twitter

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.