Volkswagen’s truck group, Traton, offered to fully take over Navistar with a cash offer of $2.9 billion. Navistar has confirmed receipt of the unsolicited offer. In a press release, the company said:
“Consistent with its fiduciary duties, Navistar's Board of Directors, in consultation with its financial and legal advisors, 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.”
Volkswagen formed Traton from its Truck and Bus Group. The truck firm already owns about 17 percent of Navistar. The offer comes in the form of $35 per share, which was about 45 percent more than shares were trading at the time. Overnight, Navistar shares rose 51 percent.
In 2016, Navistar entered a strategic alliance with Volkswagen that included a stake in the company. The partnership was to focus on powertrain technology solutions, commercial vehicle development, including advanced driver assistance systems, connected vehicle solutions, platooning and autonomous technologies, electric vehicles, and cab and chassis components.
Last year, Volkswagen entered into an alliance with Ford to develop commercial vans and medium-sized pickup trucks for global markets beginning in 2022. The company’s also agreed to investigate collaboration on autonomous vehicles, mobility services, and electric vehicles.
