Navistar acquired in $3.7B merger deal
Volkswagen truck subsidiary Traton recently struck a deal for the outstanding shares of U.S.-based Navistar International in a deal valued at $3.7 billion. While the company owned 16.7% of Navistar prior to the merger, this firmly cements the company under the umbrella including European MAN and Scania brands.
The two companies were in talk for weeks on price, before settling on $44.50 per share on the remaining stock. As it stands, Volkswagen has previously had no access to the North American market. MAN, Scania and VW’s own truck brands rely on Europe and Latin America for their profits. However, bringing in Navistar adds International trucks to the lineup, a major player in the heavy truck and bus market.
One U.S.-based player left standing
Navistar’s two largest shareholders, billionaire Carl Icahn and MHR Fund Management, voted in favor of the transaction. With the merger, though, another American truck manufacturer falls out of domestic ownership. In fact, brands like Freightliner, Western Star, Detroit Diesel and Thomas Built Buses fall under Stuttgart-based Daimler AG. Mack Trucks became a Volvo subsidiary back in 2000. It is worth noting, though, that all these vehicles are still manufactured in the United States.
With Navistar folding into Traton, the only wholly-American-owned heavy truck manufacturer left is PACCAR. Entering into the truck market all the way back in 1945 by purchasing Kenworth, the company (which also owns Peterbilt) is one of the largest manufacturers in the world.
