Navistar set to be acquired by Volkswagen truck unit in $3.7B deal

Navistar employees build a truck on the assembly line at Springfield plant. Bill Lackey/Staff

A subsidiary of Volkswagen has agreed to buy the remaining shares of Navistar for $44.50 per share.

The move will allow Traton SE, the heavy-truck division for Volkswagen AG, to acquire Navistar for a total of $3.7 billion. The company currently has a 16.8 percent stake in Navistar.

The announcement of the pending transaction follows a letter from Navistar earlier today stating that its leadership would move forward with the transaction if Traton agreed to purchase the remaining shares for $44.50 per share.

That was instead of an offer of $43 per share in cash that was previously presented by Traton.

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Traton first expressed interest in acquiring Navistar in January when it made an offer to buy the shares it did not already own for $35 per share. It later upped its offer to $43 per share in cash in September.

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Earlier this week, Traton put a deadline on its offer, stating that Navistar had until this afternoon to respond to the deal, in which representatives of Traton called their “best and final offer.”

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