Navistar International Corporation has confirmed it has received an unsolicited takeover bid from Traton SE. The offer was to acquire the company for US$35 per share in cash. Traton already holds 16.8% of Navistar.

In its statement confirming the offer, Navistar said the following:

“Consistent with its fiduciary duties, Navistar’s board of directors, in consultation with its financial and legal advisors, will carefully review and evaluate the proposal in the context of Navistar’s strategic plan for the company in order to determine the course of action that it believes is in the best interest of the company and its stakeholders. Navistar advises its shareholders to take no action, and no shareholder vote is required at this time.”

Traton chief executive officer Andreas Renschler said that over the past three years Traton had benefitted from a highly collaborative and productive strategic alliance with Navistar.

“As the market continues to evolve, we believe there are compelling strategic and financial benefits to a full combination of Traton and Navistar. The proposed transaction would create a leader in commercial vehicles with global scale and a strong portfolio of leading brands and cutting-edge products, technologies and services while delivering immediate and substantial value to Navistar stockholders,” he said. 

The proposal, which Traton expects to be evaluated by the independent directors of Navistar, is subject to certain customary due diligence. Any transaction would be subject to approval by the boards of Traton and Volkswagen AG and the board of directors of Navistar and its stockholders as well as negotiation of a definitive merger agreement and stockholder support agreements with certain major stockholders of Navistar. Traton expects the proposed transaction could be closed by the end of 2020. 

As a significant stockholder of Navistar, Traton is committed to seeing the proposal completed and would not, in its capacity as a stockholder, support an alternative transaction.

Navistar said it did not intend to make any additional comments regarding the proposal at this time.