VW’s trucks divi­sion open to buy­ing ma­jor­ity of Nav­is­tar

Business World - - WORLD BUSINESS -

MU­NICH — Volk­swa­gen ( VW) is open to buy­ing a ma­jor­ity stake in US truck maker Nav­is­tar “at some point,” it said on Mon­day, as the Ger­man au­tomaker pre­pares its trucks busi­ness for a pos­si­ble stock mar­ket list­ing that could help raise funds to ex­pand.

Volk­swa­gen Truck & Bus ac­quired a 16.9% stake in Nav­is­tar In­ter­na­tional Corp. in 2016 and last week joined forces with Toy­ota’s Hino Mo­tors as it strives to com­pete more ef­fec­tively with global truck mar­ket lead­ers Daim­ler and Volvo.

Volk­swa­gen ( VW) plans to con­vert its trucks divi­sion, which in­cludes the Sca­nia and MAN brands and a Brazil-based com­mer­cial ve­hi­cles busi­ness, into a pub­lic lim­ited com­pany as a pre­lude to a po­ten­tial stock mar­ket list­ing.

“(Tak­ing over Nav­is­tar) would make sense at some point,” Matthias Gru­endler, the fi­nance chief of VW truck and bus, told re­porters on Mon­day.

A takeover would re­quire be­tween three and four bil­lion in ex­tra costs and could be shoul­dered with­out pro­ceeds from a pos­si­ble ini­tial pub­lic of­fer­ing ( IPO), he said, with­out spec­i­fy­ing whether he was talk­ing about eu­ros or dol­lars.

“The co­op­er­a­tion (with Nav­is­tar) is work­ing re­ally well,” he added.

US law would re­quire VW to is­sue a for­mal takeover bid for Nav­is­tar if the Ger­man man­u­fac­turer raises its stake in the US com­pany above 17%, Mr. Gru­endler said. —

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