After taking a stake in U.S. truck and bus manufacturer Navistar last year, Volkswagen Truck & Bus is reportedly back for more.
Just days after confirming a new tie-up with Japanese heavy vehicle manufacturer Hino, Volkswagen now looks set to take a larger piece of the Navistar pie than its current 16.9% stake.
The parent company of the Scania and MAN brands is eyeing off the U.S. company, which produces International Trucks, as well as buses, military vehicles, engines and motorhome chassis, as part of plans to ramp-up its presence in the global heavy vehicles market.
The Wall Street Journal reporting Volkswagen may even take full control of the Illinois-based business that dates back to the 1830s and was previously known as International Harvester.
Volkswagen finance chief, Matthias Gründler, telling the publication that the company could use proceeds from an IPO to fund the potential acquisition but also suggested a takeover would also be “manageable”.
While under U.S. law, should Volkswagen increase its stake in Navistar beyond 17% it will be required to make an offer for the rest of the company.
We will keep you updated as further details on this developing story come to hand.