Volkswagen (VWAGY) last night announced that its Traton unit offered to acquire all of the outstanding shares of common stock of Navistar International (NAV) not already owned by the company at a price of $35 per share in cash.
“Since 2017, Traton and Navistar have benefitted from a strategic alliance that has delivered significant value to both companies through increased purchasing power and the integration of new technologies. As the global commercial vehicle industry continues to evolve, Traton believes that the proposed transaction is the logical next step and would result in even greater benefits,” the company said in a statement. Traton expects that the proposed transaction could be closed by the end of 2020.
The offer represents a 45% premium over Navistar’s closing share price of $24.11 on January 29, and a 19% premium over Navistar’s 90-day volume weighted average price of $29.40. Traton currently owns 16.8% of the outstanding common shares of Navistar. Shares of Navistar are up 52%, or $12.43, to $36.50 in premarket trading.