Davis Polk is advising Volkswagen Truck & Bus GmbH on its alliance with Navistar International Corporation that includes framework agreements for a strategic technology and supply cooperation and a procurement joint venture. Volkswagen Truck & Bus will acquire a 16.6% equity stake in Navistar through a primary share issuance for a price per share of $15.76 and an aggregate purchase price of approximately $256 million. The closing of the transaction and the implementation of the strategic alliance, which is expected to be completed in late 2016 or early 2017, is subject to certain regulatory approvals and other customary closing conditions.

Within the next decade, Volkswagen Truck & Bus aims to become a worldwide leading commercial vehicles group in terms of profitability, innovations for its customers and global presence. Navistar is a holding company whose subsidiaries and affiliates produce International brand commercial and military trucks, proprietary diesel engines and IC Bus brand school and commercial buses.

The Davis Polk corporate team includes partners George R. Bason Jr. and Michael Davis and associates Felipe M. Heiderich, Jesse Kramer and Mark S. Kramer. Partner Jesse Solomon, counsel Christopher Lynch and associate Rebecca Tracy Rotem are providing antitrust and competition advice. Partner Avishai Shachar is providing tax advice. Members of the Davis Polk team are based in the New York and Washington DC offices.

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