Navistar open to takeover

US-headquartered commercial trucks maker Navistar has communicated its willingness to engage with a possible sale process, saying Traton’s offer for the business represents a starting point on this journey.

While rejecting the approach, which it said undervalues the company, the firm said is the first step in exploring a potential acquisition.

As yet, it has not clarified whether it has received any other expressions of interest, or the likelihood of a sale taking place.

On 10th September, Navistar said it had received a revised proposal from Traton, under which it offered to pay USD 43.00 per share for the business.

The bid valued the remaining 83.2 per cent stake not already owned by the suitor at USD 3.56 billion and represented a 20.0 per cent premium over the target’s close of USD 35.84 on 9th September, the last trading day prior to the offer being lodged.

However, after considering the bid, Navistar’s board deemed it to undervalue the company, although conceded that it represents a starting point for further exploring the possibility of a transaction and said it is open to holding further talks with Traton on the matter.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been five deals targeting manufacturers of light trucks and utility vehicles announced worldwide since the start of 2020.

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Of these transactions, only one was worth in excess of USD 20 million as Fox Factory paid USD 341.00 million for SCA Performance Holdings, which makes sport utility vehicles and light duty trucks, in March.

© Zephus Ltd


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