Volkswagen (VLKAY) is taking a 16.6% stake in Navistar International (NAV) and that will ensure the truck-maker's survival, said TheStreet's Jim Cramer. Volkswagen Trucks & Bus offered $15.76 a share, making the deal worth $256 million. VW also has the right to appoint two directors to Navistar's board. The company has agreed to hold the shares for a minimum of three years. The strategic alliance includes framework agreement for strategic technology and supply collaboration and a procurement joint venture. The collaboration will give Volkswagen's truck brands - Scania, MAN and Volkswagen Caminhões e Ônibus - a bigger foothold in the U.S. The procurement joint venture is expected to help source parts for both companies, giving them greater scale and competitiveness.
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