Volkswagen Might Buy Majority of Navistar

Could Volkswagen be in the market for a portion of Navistar?

German automaker Volkswagen's commercial vehicle division may open up its pocketbook to purchase a majority stake in Navistar.

"(Taking over Navistar) would make sense at some point," said Matthias Gruendler, finance chief of Volkswagen Truck and Bus, in a statement to reporters. "The cooperation (with Navistar) is working really well."

Valued at roughly $3.7 billion, Navistar is a U.S. manufacturer competing with Daimler and Volvo for truck market share. Currently, Daimler leads with roughly 40 percent market share for heavy-duty trucks, with Volvo making headwinds with a 2000 acquisition of Mack Trucks. The bulk of Navistar's sales comes from the U.S., Canada, and Mexico.

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News of the impending purchase also drove up Navistar shares as high as 12 percent over the week after its announcement. 

In 2016, Volkswagen Truck & Bus acquired 17 percent of the company in a bid to offset Daimler and Volvo, equivalent to a $256 million stake. U.S. regulatory rules would force Volkswagen to pursue a takeover, should it wish to move past its current ownership stake. 

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