Navistar International Corp.’s stockholders approved the truck maker’s acquisition by Germany-based truck and bus maker Traton Group.
At Navistar's annual stockholder meeting March 2, stockholders approved Traton’s proposal to acquire all of the outstanding common shares of Navistar for $44.50 per share in cash. Traton currently owns 16.7% of Navistar's outstanding shares.
Traton and Navistar reached a deal on the long-rumored acquisition last October, after Traton put a deadline on its Sept. 10 offer, and entered into a definitive merger agreement in November.
On Jan. 30, 2020, Traton submitted a proposal to acquire all outstanding shares of common stock of Navistar at a price of $35 per share, in cash. It increased that on Sept. 10 to $43 per share.
In 2016, then-Volkswagen Truck & Bus took a 16.6% equity stake in Navistar International Corp. as part of a “wide-ranging strategic alliance."
Traton's truck brands include MAN, Scania, and Volkswagen Caminhões e Ônibus. Both Traton and Navistar have taken minority stakes in autonomous-truck-technology developer TuSimple.
In Traton's news release about the approval, the company noted, "Beginning in March 2017, Traton and Navistar have benefitted from a strategic alliance that has delivered significant value to both companies through increased purchasing scale and the integration of new technologies. This transaction builds on that success by combining Traton’s strong position in Europe and substantial presence in South America with Navistar’s complementary footprint in North America to create a global company well-positioned to benefit from enhanced brand performance, increased innovation and industry-leading capabilities."
Navistar President and CEO Persio Lisboa said in a statement, "This transaction builds upon our highly collaborative and successful strategic alliance and further enhances the growth trajectory of the combined company, while delivering immediate and substantial value to our shareholders."
The transaction remains subject to regulatory approvals and the satisfaction of customary closing conditions. Navistar continues to expect that the transaction will be completed in mid-2021.
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