Traton SE still wants Navistar International Corp.
The Volkswagen AG subsidiary, which manufactures commercial vehicles with brands that include MAN and Scania, on Sept. 10 increased its proposal to acquire Navistar by 23% per share. Navistar confirmed receipt of the revised bid.
In the revision, Munich, Germany-based Traton offered $43 per common share, up from the $35 per share it offered in an unsolicited bid in January 2020.
Traton already holds 16.8% of Navistar’s outstanding common shares, according to the Volkswagen subsidiary.
“We continue to believe in the compelling strategic benefits that a complete merger of Traton and Navistar would produce. That is why we are re-emphasizing our interest in the transaction in spite of the COVID-10 pandemic,” Traton SE CEO Matthias Grundler said in a news release.
Similiar to Traton, Navistar manufactures commercial trucks. In addition to its widely known International brand, Navistar companies also produce diesel engines, and school and commercial buses.
A lot has happened at Navistar since the January proposal, including the appointment of Persio V. Lisboa as president and chief executive officer in June and the ground-breaking of a new manufacturing facility in San Antonio that same month.
On Sept. 9 Navistar released its third-quarter 2020 earnings, in which it reported revenues of $1.7 billion, a decline of 45% compared to the same quarter in the previous year. The decrease was primarily a result of the impact of COVID-19, the company said.
In July Traton released details of its first-half 2020 performance. Like Navistar, COVID-19 impacted its performance. Total unit sales were down 37%, while sales revenue declined by a quarter year over year, the company said.
Navistar's board will review the revised proposal. “There is no assurance that any transaction with Traton will occur or be consummated,” the company's statement said.
