Hamburg – Braunschweig-based Volkswagen Truck & Bus GmbH has entered into a wide-ranging alliance with US commercial vehicle manufacturer Navistar International Corporation. It includes collaboration in technology development and in supplying Navistar with various powertrain components, the establishment of a procurement joint venture for selected components and the acquisition of an equity stake in Navistar by Volkswagen Truck & Bus. By investing around USD 256 million as part of a capital increase, Volkswagen Truck & Bus will acquire 16.6% of Navistar shares, making it a major shareholder in the company. The transaction is subject to the customary closing conditions, including merger control. Closing is expected at the end of 2016 or early 2017.
An international team from CMS Germany and CMS Luxembourg led by Dr Hilke Herchen advised VW Truck & Bus GmbH on all legal aspects of the transaction, and in particular on structuring the proposed procurement joint venture and technical collaboration. The team will also provide legal support for implementing the associated framework agreements. VW Truck & Bus was advised in close conjunction with US law firm Davis Polk, which advised on the equity stake under US law, and in collaboration with Bär & Karrer, which provided advice under Swiss law.
Volkswagen Truck & Bus GmbH is a wholly-owned subsidiary of Volkswagen AG. As an integrated commercial vehicle group it brings together the company’s product range of medium- and heavy-duty trucks and buses. The holding company is responsible for the MAN, Scania and Volkswagen Caminhões e Ônibus brands and coordinates cooperation between the three divisions. This transaction will provide Volkswagen Truck & Bus with access to the North American market, where it was not previously represented.
Navistar International Corporation is a leading manufacturer of trucks, buses and engines which is headquartered in Lisle, Illinois, USA. The company generated sales of around USD 1.8 billion in the first quarter of 2016, selling its products through a network of almost 1,000 dealers in the US, Canada, Brazil and Mexico. Worldwide, more than 60 dealers in 90 countries represent the company.
CMS Germany
Dr Hilke Herchen, Lead Partner
Dr Jacob Siebert
Philipp Melzer, both Partners
Jörg Baumgartner, Senior Associate
Charlotte Wolff von der Sahl, Associate, all Corporate
Dr Markus Schöner, Partner
Christoff H. Soltau, Counsel, both Competition & EU
Dr Felix Muhl, Counsel, Commercial
CMS Luxembourg
Julien Leclère, Partner
Sylvain Elias, Senior Associate, both Corporate
Press Contact
presse@cms-hs.com
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