Benzinga | Nov 7, 2020 06:40PM EST

Volkswagen's Traton Acquires Truck Company Navistar For $3.7B

Traton SE has paid $3.7 billion to acquire the US truck company Navistar International Corp. (NYSE:NAV).

What Happened: Traton SE, Volkswagen AG's (OTC:VLKAF) truck division, will acquire $3.7 billion worth of outstanding shares of Navistar International Corp. stock, Reuters reported Saturday.

This adds to the existing 16.7% stake Traton has in the company.

The deal, finalized in October, brings Navistar's valuation to $4.4 billion, $44.50 per share, and will help Volkswagen's truck unit expand its brand in North America.

Why It Matters: The deal marks an ongoing attempt of the truck industry to find a way to bear the cost of low emissions technology, according to Reuters.

Price Action: Navistar shares traded 0.46% higher, at $43.57 in the after-hours markets following news of the finalization of the deal.

Volkswagen AG shares in the U.S. closed at $172.10 on Friday, down 0.67%.

Image Source: Navistar