Volkswagen’s truck division, TRATON, has made another aggressive bid for American truck maker Navistar after its first offer fell upon deaf ears. Volkswagen, which currently owns 16.6% of Navistar and first offered $35 per share, is now offering $43.
In order to get the deal through, TRATON will likely need to win over a group of activist funds, led by Carl Icahn, who collectively own 40% of the company.
A key advantage of the deal would be the two truck makers working together to share the costs of developing low emission technology. This is critical because the long-haul trucking industry has struggled with the feasibility of battery technology due to the extra weight it requires the truck to carry.