Traton SE and US truck manufacturer Navistar International Corporation, in which Traton already holds a stake of 16.8%, have reached agreement in principle that Traton will acquire by merger all shares in Navistar not already held by Traton, at a price of US$44.50 per Navistar share.

“We are pleased to have reached agreement in principle for a transaction after intensive negotiations with Navistar. We are looking forward to completing our due diligence and obtaining the necessary approvals in respect of this exciting deal in order to welcome the new Traton family member,” said Traton SE CEO Matthias Gründler.

This agreement in principle remains subject to finalisation of due diligence to the satisfaction of Traton, agreeing on the conclusion of a merger agreement and related transaction documents and the approval of the transaction by the executive bodies and committees of Traton and Volkswagen as well as the board of directors and the shareholder meeting of Navistar.

“There is no assurance that the parties will reach agreement on definitive transaction documentation, or as to the terms thereof or that any transaction, if such agreement is reached, will ultimately be consummated,” Traton said in a statement.