We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Navistar Gets $3.6B Buyout Offer From Traton, Shares Pop
Read MoreHide Full Article
Navistar International’s merger talks with Volkswagen’s (VWAGY - Free Report) trucks arm Traton SE are gathering steam. Notably, Traton already owns around 17% stake in Navistar. Traton has boosted its takeover bid for the rest of the Illinois-based truck maker to $43 per share from $35 offered in January 2020. The revised offer values the portion of the stock that is not already owned by Traton at around $3.6 billion. Post the announcement of the sweetened offer by Traton, Navistar’s shares rallied around 13.8% yesterday to close the session at $40.78.
Navistar-Traton merger talks had been heating up since January 2020 until the coronavirus outbreak put the deal into jeopardy. However, Volkswagen’s arm has resumed negotiations lately to acquire the rest of Navistar. The acquisition would enable Volkswagen to secure a strong position in the U.S. heavy-truck market — the largest market for the truck industry — and position it better than European peers including Daimler AG and Volvo Group.
While Navistar’s board of directors and management team are currently evaluating the revised proposal of Traton, it wouldn’t come as a surprise if the latter hikes the bid again if the current offer goes unaccepted. Considering Volkswagen limited exposure in the North American truck industry and Navistar’s strong footing in the region along with impressive dealership networks, it would make sense for the Germany-based auto giant to make every effort to purchase the remaining shares of Navistar and become its sole owner.
Notably, Navistar and Traton have been collaborating over the past couple of years to make developments in the electric vehicle technology in order to slash annual costs of both the companies by $200 million.Navistar is marching toward an electrified future aided by the company’s Next eMobility Solutions, in view of the target of launching medium-duty electric trucks by 2022.
Navistar currently carries a Zacks Rank #2 (Buy). Another top-ranked player in the auto space is the U.S. car giant General Motors (GM - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Navistar Gets $3.6B Buyout Offer From Traton, Shares Pop
Navistar International’s merger talks with Volkswagen’s (VWAGY - Free Report) trucks arm Traton SE are gathering steam. Notably, Traton already owns around 17% stake in Navistar. Traton has boosted its takeover bid for the rest of the Illinois-based truck maker to $43 per share from $35 offered in January 2020. The revised offer values the portion of the stock that is not already owned by Traton at around $3.6 billion. Post the announcement of the sweetened offer by Traton, Navistar’s shares rallied around 13.8% yesterday to close the session at $40.78.
Navistar-Traton merger talks had been heating up since January 2020 until the coronavirus outbreak put the deal into jeopardy. However, Volkswagen’s arm has resumed negotiations lately to acquire the rest of Navistar. The acquisition would enable Volkswagen to secure a strong position in the U.S. heavy-truck market — the largest market for the truck industry — and position it better than European peers including Daimler AG and Volvo Group.
While Navistar’s board of directors and management team are currently evaluating the revised proposal of Traton, it wouldn’t come as a surprise if the latter hikes the bid again if the current offer goes unaccepted. Considering Volkswagen limited exposure in the North American truck industry and Navistar’s strong footing in the region along with impressive dealership networks, it would make sense for the Germany-based auto giant to make every effort to purchase the remaining shares of Navistar and become its sole owner.
Notably, Navistar and Traton have been collaborating over the past couple of years to make developments in the electric vehicle technology in order to slash annual costs of both the companies by $200 million.Navistar is marching toward an electrified future aided by the company’s Next eMobility Solutions, in view of the target of launching medium-duty electric trucks by 2022.
Navistar currently carries a Zacks Rank #2 (Buy). Another top-ranked player in the auto space is the U.S. car giant General Motors (GM - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>