Volkswagen is interested in buying Navistar
Volkswagen said Monday morning that it's considering a full takeover offer for Illinois-based truck-maker Navistar International, in which VW already holds 16.9% stake.
Why it's a big deal: Because VW has been prepping a 2019 IPO for its trucks unit, and this disclosure suggests a continuation of that plan under new CEO Herbert Diess (who got the job just last week).
It appears the intent would be to buy Navistar with the IPO proceeds, although VW also could choose to make the purchase first as a pre-float bulk-up.
Navistar's current market cap is around $3.66 billion, with shares up around 5% as of this writing.
Bottom line per Bloomberg: "A stock sale by the heavy-vehicle division, which Evercore ISI estimates has as much as 30 billion euros ($37 billion) in assets, would mark the most significant structural shift so far for Volkswagen as the world’s biggest carmaker retools for massive change across its industry."