VW Buys Stake in Icahn-Backed Navistar in Bet on U.S. Trucks
- Volkswagen to pay $256 million for 16.6% of Navistar
- VW trucks unit is largely focused on Europe, South America
VW Buys Stake in Navistar, Company CEOs Weigh In
Volkswagen AG will buy a stake in Navistar International Corp. to gain a foothold in the U.S. heavy-truck market, taking a gamble on a struggling U.S. manufacturer as the German company still grapples with the fallout from the emissions-cheating scandal. Navistar shares soared as much as 67 percent.
VW will pay $256 million for a 16.6 percent holding and assume two board seats as part of a deal that includes technology sharing and joint purchasing, the companies said Tuesday. The Wolfsburg-based automaker will pay $15.76 a share, 12 percent more than Navistar’s most recent close. The holding, which VW said it may increase later, puts it on par with the largest shareholders, activist investors Carl Icahn and Mark Rachesky.