All eyes are on Navistar stock as it increased over 50 percent on the news yesterday that an offer was made to acquire the manufacturer of commercial trucks, school buses and military vehicles.
TRATON Group, formerly known as Volkswagen Truck & Bus, submitted an unsolicited proposal on Thursday to go all-in on its relationship with the company, which is based in Lisle, Illinois. TRATON announced an offer price of $35 per share in cash.
Navistar stock closed Wednesday on the New York Stock Exchange at $24.11 per share. Then the stock opened Friday at $37.06.
Navistar answered the proposal with a statement that a deal is not imminent. It also advised its shareholders to take no action and stated that a shareholder vote is not required at this time.
“There can be no assurance that any negotiations between Navistar and TRATON regarding this proposal will take place, and if such negotiations do take place, there can be no assurance that any transaction with TRATON will occur or be consummated,” the company added.
Meanwhile, TRATON Group said it expects the proposed transaction could close by the end of the year.
TRATON Group formed an alliance with Navistar in 2016, when it acquired a 16.6 percent stake in the company in 2016 for $256 million. At the time, Volkswagen Truck & Bus CEO Andreas Renschler said “all options are open,” when asked by media during a press conference if the two companies might eventually merge.
Meanwhile, Navistar CEO Troy Clarke said the strategic partnership could eventually result in Volkswagen Truck and Bus engines powering Navistar commercial vehicles, which includes the IC Bus brand of school buses.
At the 2017 North American Commercial Vehicle Show in Atlanta, the companies announced the development of electrified Class 6 and 7 trucks. That fall, IC Bus unveiled its “chargE” school bus at the NAPT Summit in Columbus, Ohio.
A production model of the IC Bus electric school bus is expected to be released sometime this year.