[ad_1]

[Stay on top of transportation news: Get TTNews in your inbox.]

Traton SE announced Oct. 16 it had agreed to Navistar International Corp.’s condition of a per-share price of $44.50 and will acquire all shares it does not already own as part of a $3.7 billion purchase of the U.S. truck maker.

“We are pleased to have reached agreement in principle for a transaction after intensive negotiations with Navistar. We are looking forward to completing our due diligence and obtaining the necessary approvals in respect of this exciting deal in order to welcome the new Traton family member,” Traton CEO Matthias Gründler said in a release.

Navistar

That followed Navistar’s announcement earlier in the day that it was prepared to move forward with a transaction in which Traton would acquire Navistar for $44.50 per share in cash, countering Traton’s stated best and final offer of $43 per share.

Traton — Volkswagen AG’s heavy-truck division — had given Navistar until Oct. 16 to respond to the offer it submitted on Oct. 14, which was an increase from its initial offer in January of $35 per share.

Navistar Photo Gallery

Navistar

An LT Series Truck. (Navistar International Corp.)

In its letter to Traton, Navistar’s board asked Traton to confirm that a price of $44.50 per share is a basis for finalizing the definitive agreements. Navistar’s board confirmed that an offer of $44.50 per share has the support of Navistar’s two largest shareholders.

Traton already owns about 16.8% of the Lisle, Ill.-based truck maker.

Navistar said earlier the transaction is supported by its largest shareholders, Carl Icahn and MHR Fund Management, the hedge fund founded by Mark Rachesky, Bloomberg News reported.

If completed successfully, the acquisition will deepen the existing arrangements and relationships Navistar and Traton share. Navistar’s involvement with Traton has focused on a range of economies and efficiencies — including getting parts to dealers faster, procurement, systems support, electric vehicles and new diesel powertrains.

Want more news? Listen to today’s daily briefing:

 

[ad_2]

Source link

Comments to: Traton, Navistar Reach Agreement on $3.7 Billion Buyout

Your email address will not be published. Required fields are marked *

Attach images - Only PNG, JPG, JPEG and GIF are supported.

Login

Welcome to Typer

Brief and amiable onboarding is the first thing a new user sees in the theme.
Join Typer
Registration is closed.