Volkswagen Increases Bid For Navistar To $3.6B After First Offer Fell Flat

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.