Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Navistar, Traton Make a Deal

Navistar and Traton have agreed in principle to a deal for the acquisition of Navistar International Corp. by Volkswagen’s truck and bus unit for $3.69 billion.

October 16, 2020
Navistar, Traton Make a Deal

Outside Traton's hall at the IAA Commercial Vehicle show in Germany in 2018.

Photo: Deborah Lockridge

3 min to read


UPDATED: Navistar International Corp. and Traton have reached an agreement for Traton to buy out the remaining shares in Navistar.

The news from Traton comes just hours after an announcement from Navistar indicating that the two companies looked like they finally might have a deal for the acquisition of Navistar International Corp. by Volkswagen’s truck and bus unit for $3.69 billion.

Ad Loading...

Following discussions between Navistar and Traton, Navistar's board of directors confirmed Friday morning on Oct. 16 that it would be prepared to move forward with a transaction in which Traton would acquire Navistar for $44.50 per share in cash. Navistar's board confirmed that an offer of $44.50 per share has the support of Navistar's two largest shareholders, Icahn and MHR.

In an Oct. 16 letter to Traton, Navistar's board asked Traton to confirm that a price of $44.50 per share is a basis for finalization of definitive agreements and asked that Traton promptly make a public announcement of an extension of its previously announced expiration of its offer to acquire Navistar.

An announcement from Traton midday confirmed it.

"We are pleased to have reached agreement in principle for a transaction after intensive negotiations with Navistar. We are looking forward to completing our due diligence and obtaining the necessary approvals in respect of this exciting deal in order to welcome the new Traton family member," said Matthias Gründler, CEO of Traton SE, in a news release.

This agreement in principle remains subject to finalization of due diligence to the satisfaction of Traton, agreeing on the conclusion of a merger agreement and related transaction documents, and the approval of the transaction by the executive bodies and committees of Traton and parent company Volkswagen AG, as well as by Navistar's board of directors and shareholders.

Ad Loading...

Navistar shares surged by as much as 21% to nearly $43 shortly after the open of regular trading, according to Bloomberg, after dropping earlier this week following Traton’s surprise “take it or leave it” letter.

On Oct. 14, Traton said its September 10 offer of $43 per share in cash for all outstanding shares of common stock of Navistar not already owned by Traton would expire if not accepted by Friday, Oct. 16, at 6 p.m. Central European Time – that’s noon Eastern Daylight Time in the U.S.

On Jan. 30, 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.

Bloomberg also noted that boosting the value of VW’s trucks unit has been a major priority for CEO Herbert Diess, who talked about the importance of acquiring Navistar in his address to shareholders at VW’s annual general meeting last month. Traton is also in the midst of a major restructuring of its MAN unit.

Ad Loading...

Updated Friday, Oct. 16, 2020, at 4:40 p.m. EDT.

More Equipment

PlusAI, Traton Group autonomous truck partnership.
Equipmentby News/Media ReleaseFebruary 2, 2026

Traton, PlusAI Accelerate Factory-Built Autonomous Truck Launch in U.S. and Europe

The companies also said they plan to coordinate deployment planning across priority freight corridors and define routes and operational design domains for U.S. commercial service while laying the groundwork for expansion into key European markets.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
Volvo Trucks FH.
Equipmentby News/Media ReleaseJanuary 29, 2026

Volvo Repeats as Europe’s Heavy-Truck Market Leader in 2025

Volvo Trucks held onto the top spot in Europe’s heavy-duty truck market for the second straight year.

Read More →
Ad Loading...
Western Star's Star Nation 2025 in Bend, Oregon.
Equipmentby News/Media ReleaseJanuary 24, 2026

Western Star Opens Entries for 2026 Star Nation Experience

Previous Star Nation events have included driver challenges, exclusive access to Daimler Truck North America facilities and hands-on experiences with the latest Western Star X-Series lineup.

Read More →
Volvo VNL tractor.
EquipmentJanuary 22, 2026

Europe’s HayWay Group Enters U.S. Market with Order for 80 Volvo VNLs

HayWay Group comprises 19 companies operating across Europe and the U.S. and is now bringing its international logistics experience to North America.

Read More →
SponsoredJanuary 19, 2026

3 New Ways Fleet Software Pays: ROI opportunities for modern fleet managers

Safety, uptime, and insurance costs directly impact profitability. This eBook looks at how fleet software is evolving to deliver real ROI through proactive maintenance, AI-powered video telematics, and real-time driver coaching. Learn how fleets are reducing crashes, defending claims, and using integrated data to make smarter operational decisions.

Read More →
Ad Loading...
SponsoredJanuary 19, 2026

Basic Tracking vs Next Generation Fleet Technology

Fleet software is getting more sophisticated and effective than ever, tying big data models together to transform maintenance, safety, and the value of your existing tech stack. Fleet technology upgrades are undoubtedly an investment, but updated technology can offer a much higher return. Read how upgrading your fleet technology can increase the return on your investment.

Read More →
PlusAI-T2 Japan autonomous partnership.
Equipmentby News/Media ReleaseJanuary 16, 2026

PlusAI, T2 Partner to Bring Level 4 Autonomous Trucks to Japan

PlusAI is seeking to relieve Japan’s acute truck driver shortage by accelerating the adoption of autonomous trucks in the country.

Read More →
Three Freightliner fifth-generation Cascadia trucks are shown parked in a lineup, highlighting exterior design and aerodynamic styling.
Equipmentby News/Media ReleaseJanuary 13, 2026

Freightliner Cascadia Receives Prestigious Design Award

Freightliner’s fifth-generation Cascadia earned a 2025 Red Dot Design Award for its aerodynamic design and functional updates developed through close collaboration between designers and engineers.

Read More →
Ad Loading...
2026 Mack Anthem.
EquipmentJanuary 13, 2026

Mack Begins Redesigned Anthem Production

Mack’s new Anthem Class 8 tractor targets regional-haul fleets with enhanced maneuverability and fuel economy gains.

Read More →