BREAKING NEWS

BREAKING NEWS

Volkswagen resumes preparations for truck unit IPO

Volkswagen resumes preparations for truck unit IPO
FILE PHOTO: Trucks of German truckmaker MAN SE are seen on the assembly line in their plant in Steyer, Austria September 13, 2018. REUTERS/Leonhard Foeger/File Photo -
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Leonhard Foeger(Reuters)
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BERLIN (Reuters) - Volkswagen said on Monday it would resume preparations for an initial public offering (IPO) of its trucks unit Traton, which it put on hold in March due to volatile market conditions.

The automaker had previously said it could list up to 25 percent of Traton in a deal that was expected to raise up to 6 billion euros (£5.20 billion) in Germany's biggest share offering of the year.

"Current market assessments have encouraged us to take today’s decision," Volkswagen finance chief Frank Witter said in a statement.

Traton CEO Andreas Renschler said: "Our groundwork has been excellent and we are now fully focused on a potential IPO before the summer break."

Traton includes the MAN, Scania and Volkswagen trucks businesses. Volkswagen wanted to list it as part of its drive to create a global trucks business.

(Reporting by Emma Thomasson; Editing by Mark Potter)

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