Navistar and Traton reach US$3.7bn agreement in principle

The Traton-Navistar saga appears to be nearing its conclusion, with plans to acquire the US truck maker all but confirmed. Following months of back and forth, a series of revised offers and a deadline that went down to the wire, the pair appear to have reached an agreement over a US$3.7bn takeover.

Traton was formed in 2018 after the Volkswagen Group separated its truck and passenger car operations. The new company combines Scania, MAN Truck & Bus and Volkswagen Caminhões e Ônibus—as well as a 16.8% stake in Navistar, a minor stake in Sinotruk and a partnership with Hino. A buy-out of Navistar would dramatically improve Traton’s presence in North America, and reduce its reliance on Europe and Brazil.

Both parties have made it clear that the agreement remains informal at this stage, with a definitive contract yet to be approved by their respective boards. However, it is the first sign of real progress in a story that has rolled on for the best part of a year.

In January…