Volkswagen Truck & Bus enters into vital fondness with Navistar

Posted on 06. Sep, 2016 by in Volkswagen Canada

Volkswagen Truck Bus GmbH (“Volkswagen Truck Bus”) and Navistar International Corporation (“Navistar”), a US-based blurb vehicles manufacturer, currently announced that they have shaped a inclusive fondness that includes horizon agreements for a vital record and supply team-work and a buying corner venture. Volkswagen Truck Bus will similarly acquire a 16.6% equity interest in Navistar by a primary share issuance.

With a execution of this transaction, Volkswagen Truck Bus, that includes a brands MAN, Scania, and Volkswagen Caminhões e Ônibus, will advantage entrance to a pivotal North American market, where it was not formerly represented. Andreas Renschler, CEO of Volkswagen Truck Bus and member of a Board of Management of Volkswagen AG obliged for blurb vehicles, said: “Closer partnership among a existent brands was a tip priority for a blurb vehicles business and we are good on lane in this context. We are now holding a subsequent step on a approach to apropos a Global Champion in a blurb vehicles industry. The vital fondness with Navistar is an critical miracle and will be really profitable for both sides.”

“We are really gratified to partner with a tellurian personality who shares a perspective of a world, in an fondness that will broach mixed advantages and is unchanging with a open-integration strategy,” pronounced Troy Clarke, President and CEO of Navistar. “Starting in a nearby term, this fondness will advantage a purchasing operations by tellurian range and scale. Over a longer term, it is dictated to enhance a record options we are means to offer a business by leveraging a best of both companies and enabling Navistar to broach extended uptime. Volkswagen Truck Bus’s equity investment will strengthen a liquidity position and enhance a financial flexibility, while aligning us with a profitable vital partner.”

Volkswagen Truck Bus will squeeze from Navistar newly released common shares representing, pro forma for such issuance, a 16.6% interest in Navistar for a cost per share of $15.76 and an total squeeze cost of approximately $256 million (or approximately €229 million during stream sell rates). In tie with this investment, Truck Bus will be represented on Navistar’s Board of Directors. In addition, both companies have concluded to combine closely.

Matthias Gründler, CFO of Volkswagen Truck Bus, said: “Our collaboration, generally with courtesy to a powertrain, will extremely boost a synergy potential. Navistar will be means to distinction from glorious powertrain technologies and we, in turn, will advantage from significantly aloft volumes. Initiating this vital fondness now will capacitate us to exercise a mandate of Navistar into a corner member platforms from a get-go.”

With a vital record and supply cooperation, Volkswagen Truck Bus will turn one of Navistar’s many critical record partners. While a partnership will concentration on common powertrain systems, it will also capacitate partnership in many aspects of destiny blurb car development.

Additionally, Volkswagen Truck Bus and Navistar have concluded to settle a buying corner try that will pursue corner tellurian sourcing opportunities.

The vital fondness will accept slip from an Alliance Board consisting of top-level member from both sides.

Under a powerful of Volkswagen Truck Bus, Andreas Renschler has been streamer a routine of bundling medium- and heavy-duty trucks and buses of Volkswagen AG into a strong blurb vehicles group. The Company’s plan includes skeleton to enhance into new regions. Within a subsequent decade, Volkswagen Truck Bus aims to turn a worldwide heading blurb vehicles organisation in terms of profitability, innovations for a business and tellurian presence.

The shutting of a transaction and a doing of a vital fondness is theme to certain regulatory approvals and other prevalent shutting conditions. The shutting of a share merger by Volkswagen Truck Bus is serve theme to a finalization of a agreements ruling a buying corner try and of a initial agreement underneath a record and supply cooperation. Closing is approaching to be finished in late 2016 or early 2017. Volkswagen Truck Bus was suggested by Rothschild as financial advisor, and Davis Polk Wardwell LLP, CMS Germany and Bär Karrer as authorised advisors.

An central proclamation discussion call will be conducted on Sep 6, 2016 during 2.30 p.m. (CEST), that will be audiocast live during www.volkswagenag.com/ir/truckandbus.

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