LISLE, Ill. — Navistar International Corp., the parent company of IC Bus, has confirmed that it received an unsolicited proposal on Thursday from Traton SE to acquire the company for $35 per share.
Navistar stated in a news release that its board of directors, in consultation with its financial and legal advisors, will review and evaluate the proposal from Traton, a subsidiary of Volkswagen, in the context of Navistar’s strategic plan for the company to determine the course of action that it believes is in the best interest of the company and its stakeholders.
Navistar also advised its shareholders in the news release to take no action and stated that no shareholder vote is required at this time.
“There can be no assurance that any negotiations between Navistar and Traton regarding this proposal will take place, and if such negotiations do take place, there can be no assurance that any transaction with Traton will occur or be consummated,” according to Navistar. “Navistar does not intend to make any additional comments regarding the proposal unless and until it is appropriate to do so or a formal agreement has been reached.”
As School Bus Fleet previously reported, in 2016, Navistar formed a wide-ranging strategic alliance with Volkswagen Truck & Bus, which was renamed Traton in 2018. The Volkswagen subsidiary took a 16.6% stake in Navistar, invested $256 million in the company and gained the right to appoint two directors to Navistar's board. The alliance also included agreements for strategic technology and supply collaboration, as well as a procurement joint venture.
Traton and Navistar's strategic alliance has “delivered significant value to both companies through increased purchasing power and the integration of new technologies,” according to a news release from Traton.