8TRA Traton SE

By Kim Richters

Volkswagen AG subsidiary Traton SE said Saturday that it had reached a definite agreement to acquire the outstanding shares in Navistar International Corp. for around $3.7 billion.

Traton said it would acquire all outstanding common shares in truck- and bus-maker Navistar that it doesn't already own for $44.50 a share in cash. It previously held a 16.7% stake in the Illinois-based company.

The companies in October reached an agreement in principle for the takeover, after Traton raised its initial offer of $43 a share to $44.50 per share.

Traton expects the acquisition to be completed in mid-2021, subject to Navistar shareholder approval and regulatory approvals.

It said major Navistar shareholders Icahn Capital LP and MHR Fund Management LLC agreed to vote in favor of the deal.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

November 09, 2020 01:55 ET (06:55 GMT)

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