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Friday | November 27 | 2020

Volkswagen’s truck division to pay $ 3.7 billion for US company Navistar

Traton, the commercial truck division of the German group Volkswagen AG, has agreed to buy the remaining shares it does not yet own at the US company Navistar International.

The offer stands at $ 44.5 per share, or $ 3.7 billion in cash, DPA and Reuters reported.

In 2016, Volkswagen acquired a 16.60% stake in the American truck manufacturer, and currently owns almost 16.80% of Navistar International shares.

The goal of the two companies was to collaborate in the field of procurement and technology development, in order to reduce their costs by 200 million dollars annually.

Volkswagen also wants to expand its presence in the North American truck market.

The deal comes after months of negotiations and puts the entire Navistar company at about $ 4.4 billion.

Traton owns the European brands of MAN, Scania and Volkswagen commercial trucks.

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