Navistar to Merge with Traton

Nov. 12, 2020

Navistar and Traton, a Volkswagen unit, will merge under an agreement in which Traton will purchase all stock not already owned by Traton for a price of $44.50 per share in cash, or $3.7 billion. Traton currently owns 16.7 percent of the stock. The deal is set to close mid-2021, subject to Navistar shareholder approval.

The companies have had a strategic alliance since March 2017. The merger combines Traton’s position in Europe and South America with Navistar’s complementary footprint in North America.

“Today’s announcement accelerates our Global Champion Strategy by expanding our reach across key truck markets worldwide, including scale and capabilities to deliver cutting-edge products, technologies and services to our customers,” said Traton CEO Matthias Grundler, in a prepared statement. “Together, we will have an enhanced ability to meet the demands of new regulations and rapidly developing technologies in connectivity, propulsion and autonomous driving for customers around the world. Navistar has been a valuable partner, and we are confident this combination will deliver compelling strategic and financial benefits, create enhanced opportunities for both Navistar and Traton, and best position us to drive sustained value in the evolving global commercial vehicle industry.”

Said Navistar president/CEO Persio Lisboa in a statement:

“This transaction builds upon our highly collaborative and successful strategic alliance and further enhances the growth trajectory of the combined company, while delivering immediate and substantial value to our shareholders. We look forward to continuing to work with the TRATON team to create opportunities for our employees and provide an outstanding experience for our customers and dealers through best-in-class products, services and technologies.”

Gunnar Kilian, member of the board of Volkswagen AG and responsible for the Truck & Bus division, said:

“Volkswagen is Traton’s biggest shareholder. The agreement is thus an important milestone for Volkswagen because it underpins our strong strategic commitment to continue driving growth also during the ongoing challenging economic climate. The acquisition of Navistar will significantly leverage Traton’s positioning in North America, one of the biggest and most profitable markets for heavy trucks. Together, the companies can enhance scale and reach in key markets as well as create further synergies.”

Source: Navistar