At Navistar International's annual stockholder meeting, the truck maker's shareholders approved the proposal from the Traton Group to acquire all of the outstanding common shares of Navistar at a price of $44.50 per share in cash, worth nearly $3.7 billion. Earlier bids were for $37 and $43 per share, respectively. Traton, Volkswagen AG’s commercial truck division, currently owns 16.7% of the outstanding shares of common stock of Navistar. The transaction remains subject to regulatory approvals and the satisfaction of customary closing conditions. The transaction should be completed in mid-2021.
As part of Traton, Navistar will join the Scania, MAN, and Volkswagen Caminhões e Ônibus brands, creating one of the world's largest truck manufacturers. Navistar allows Traton to gain an instant presence in North America. By acquiring the Lisle, Ill.-based Navistar, the German-based Traton will also receive a brand new manufacturing facility for Classes 6-8 opening in San Antonio in 2022, a growing eMobility division, and an established partnership with leading engine maker Cummins (the two are collaborating on a fuel cell electric truck) and burgeoning relationship with self-driving truck startup TuSimple. Traton will also own IC Bus.
“Together, we will have an enhanced ability to meet the demands of new regulations and rapidly developing technologies in connectivity, propulsion, and autonomous driving for customers around the world," said Traton CEO Matthias Gründler in a statement when the acquisition agreement was reached in October 2020.
Stockholders also voted to approve all other proposals, including two non-binding proposals regarding executive compensation arrangements, the election of Navistar directors, and the ratification of Navistar's independent registered public accounting firm. Navistar will file the final vote results for the annual meeting with the U.S. Securities and Exchange Commission on a form 8-K.
"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,” said Persio Lisboa, Navistar president and CEO, in an earlier statement.
