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VW’s truck division ‘could acquire Navistar’
Posted on Tuesday, 17 April 2018 08:07
The heavy truck unit of German automotive giant Volkswagen is being linked with an acquisition of Navistar following comments made by finance chief Matthias Gruendler.
Reuters picked up on comments made by the executive to reporters last week, when he said a purchase of the unit would make sense at some point.
However, he stopped short of giving any indication as to when a transaction could be likely to take place or how much the company has available to spend.
Volkswagen’s truck unit currently owns a 16.9 per cent share of Navistar, having participated in a USD 255.97 million private placing of stock back in September 2016.
At the time, Gruendler said the move would increase the potential for cost saving as Navistar would be able to capitalise on the automotive firm’s powertrain technologies, while the German company would benefit from higher volumes.
This is not the first time this year that Navistar has been linked with a deal; in February, FreightCar America signed on the dotted line to pick up the Alabama-based railcar operations of Navistar International for an undisclosed consideration.
Navistar claims to be a leader in the advancement of truck development.
The firm, which has a history dating back more than 175 years, manufactures trucks, buses and defence vehicles under brands like International Truck and IC Bus.
It posted net sales and revenues of USD 8.57 billion for the year to 31st October 2017, marking a 5.7 per cent increase on the USD 8.11 billion recorded over the preceding 12 months.
Should VW go ahead with a purchase of Navistar, it would be the second transaction targeting a light truck and utility vehicle manufacturer to have been announced worldwide in 2018, according to Zephyr, the M&A database published by Bureau van Dijk.
The other such deal involved AviChina Industry & Technology picking up AVIC Shenyang Aircraft Co for USD 9.00 million in mid-February.
© Zephus Ltd