TRATON Completes $3.7 Billion Navistar Merger

In July 2021, Munich-based TRATON GROUP completed its acquisition of Navistar. The deal brought the maker of International trucks and engines fully under TRATON's ownership.

TRATON said on July 1, 2021, that filing the certificate of merger had closed the transaction, giving it all of Navistar's common shares. It put the purchase price at about $3.7 billion. According to Navistar's SEC filing on the closing, shareholders received $44.50 in cash per share, and Navistar became an indirect subsidiary of TRATON.

Navistar was expected to be delisted and deregistered with the SEC during July 2021.

A partnership turned merger

The two companies had worked together since 2017 through a strategic alliance focused on joint purchasing and technology. They signed their merger agreement in November 2020.

TRATON said the combination joined its strong position in Europe and South America with Navistar's North American presence. It said Navistar would be better able to meet growing customer needs, especially in electric drivetrains and autonomous driving.

"Over the past five years, Navistar and the TRATON brands have worked very well together and it is exciting to become now part of the global TRATON GROUP," Navistar President and CEO Persio Lisboa said in TRATON's announcement.

TRATON CEO Matthias Gründler said completing the merger quickly despite the COVID-19 pandemic reflected teamwork "on both sides of the Atlantic."

What it means for drivers and fleets

For fleets running International trucks, the deal put one of North America's major truck makers inside a global group. TRATON said that would help Navistar meet customer needs, especially in electric drivetrains and autonomous driving.

Fleet buyers could watch for the alliance's joint purchasing and technology work to show up in future product lines, particularly in powertrains and zero-emission models.