Navistar International Corporation (NYSE: NAV) closed Friday’s session with gains of 52.14%. This came after a gap up that saw the stock open at $37.06, significantly higher than the previous day’s close of $24. The momentum came after the company received a $2.9 billion offer from TRATON SE, a subsidiary of Volkswagen. The $2.9 billion offer represents a price of $35, for each of the company’s shares.

The company stated that the offer will be reviewed by its board, and if it is accepted, it will it. Volkswagen already has a stake in the company. It holds 16% of the company that was acquired in 2016, as it seeks to solidify its position in North America, the world’s largest truck market.

Navistar and TRATON have also been working together on the tech front, even before this offer.  The two have been actively developing technologies, and buying others, with the goal of cutting operational costs by $200 billion annually.

Prior to this rise, the stock has been underperforming, largely due to lower sales. In the 2020 financial year, the company expects retail deliveries for class 6-8 trucks and buses in North American to be in the 335k to 365k units range. This is lower compared to earlier deliveries that were in the 435k and 455k units range. In terms of revenues, the company projects revenues to be between $9.25 and $9.75 billion. This is lower than an earlier projection of between $11.25 and $11.75 billion.

From its price action, the stock’s price action reflected the buyout offer price. It gapped up to open the day at $37.06. It then traded between a low of $36.41, and a high of 37.48, before closing the day at $36.62. Volumes in the day stood at 8.98 million.

About Navistar International Corporation

Navistar International Corporation is a manufacturer of commercial trucks and buses. It is based in Lisle, Illinois.