Volkswagen is open to buying a majority stake in US truckmaker 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 percent 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 3 and 4 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 percent, Gruendler said. VW paid $256 million for its stake in Navistar, bolstering Europe's biggest automaker's access to the lucrative North American truck market.
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