Volkswagen’s truck division, Traton, will move forward to acquire Navistar following a letter from the Navistar board approving a cash offer of $44.50 per share, a deal estimated to be $3.7 billion. The offer was up from $43 proposed last month.
Traton had gained support from Navistar’s two largest shareholders, and the Lisle, Illinois-based heavy truck manufacturer agreed to the deal after confirming their support. Traton owns 16.8 percent of the company. The two largest shareholders are Carl Icahn and MHR Fund Management.
The merger would give Traton access to North American markets and add the International brand to its other truck brands: MAN, Scania, and Volkswagen
