MUNICH (Reuters) – Volkswagen (VOWG_p.DE) is open to buying at some point a majority stake in U.S. truckmaker Navistar International Corp (NAV.N) as it pushes to expand its truck division’s global presence and tap capital markets.
FILE PHOTO: A VW sign is seen outside a Volkswagen dealership in London, Britain November 5, 2015. REUTERS/Suzanne Plunkett/File Photo
Volkswagen Truck & Bus acquired a 16.9 percent stake in Navistar in 2016 and last week joined forces with Toyota’s (7203.T) Hino Motors as it aims to compete more effectively with global truck market leaders Daimler (DAIGn.DE) and Volvo (VOLVb.ST).
Europe’s largest automaker plans to convert its truck division into a public limited company as a prelude to a potential stock-market listing to foster future growth at the unit which includes the Scania and MAN brands and a Brazil-based commercial vehicles business.
“(Taking over Navistar) would make sense at some point,” Matthias Gruendler, the finance chief of VW truck and bus, told reporters on Thursday. A takeover would require between 3 and 4 billion in extra costs, he said, without specifying whether he was talking about euros or dollars.
“The cooperation is working really well.”
U.S. law would require VW to issue a formal takeover bid for Navistar once the German manufacturer raises its stake in the U.S. peer above 17 percent, the CFO said.
VW paid $256 million for its stake in Navistar, giving the German company access to the lucrative North American truck market. VW’s trucks unit had “significant” synergies from joint procurement with Navistar last year, CEO Andreas Renschler said.
Reporting by Andreas Cremer; Editing by Arno Schuetze and David Evans