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January 30, 2020 6:00 PM, EST

Volkswagen's Traton Unit Submits Buyout Offer for Navistar

The Navistar-Traton booth at IAAThe Navistar/Traton SE booth at IAA in 2018. (Joe Howard/Transport Topics)

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Navistar International Corp. said it has received an unsolicited buyout offer from its European truck partner Traton SE — which is owned by Germany’s Volkswagen AG — in a $35 per share cash offer.

According to Bloomberg News, the offer for Navistar — which makes International Trucks — works out to a price tag of $2.9 billion and advances the German company’s bid to gain a larger foothold in the U.S. heavy-truck market. The Wall Street Journal estimated the value to be roughly $3.5 billion.

The Wolfsburg, Germany-based company already owns a 17% stake in Navistar, whose biggest holder is billionaire investor Carl Icahn, according to data compiled by Bloomberg.

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Navistar in its statement said its board of directors in consultation with its financial and legal advisers will “carefully review and evaluate the proposal in the context of Navistar’s strategic plan for the company in order to determine the course of action that it believes is in the best interest of the company and its stakeholders.” Navistar advised its shareholders to take no action, and said no shareholder vote is required at this time.

“There can be no assurance that any negotiations between Navistar and Traton regarding this proposal will take place, and if such negotiations do take place, there can be no assurance that any transaction with Traton will occur or be consummated,” the statement said.

Navistar said it does not intend to make any additional comments regarding the proposal “unless and until it is appropriate to do so or a formal agreement has been reached.”

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