Caterpillar, Navistar Agree to China Venture
WARRENVILLE, Ill. (TheStreet) -- Caterpillar and Navistar agreed to form a joint venture with a Chinese manufacturer to build commercial trucks for the Chinese market.
The companies made the announcement after the bell Monday, confirming
earlier reports
that discussions between the parties had begun.
The agreement hasn't been officially inked, however. In fact, the companies don't expect to seal the deal until the middle of next year.
The proposed joint venture would be 50-50 between
Anhui Jianghuai Automobile
and the Navistar-Caterpillar team, called NC2, which aims to build and market Navistar's International and Caterpillar's Cat brand commercial trucks in markets outside North America.
The venture, which will use Jianghuai's manufacturing plants and NC2's "technology know how," may also create a research-and-development unit in China, the companies said in a press release.
Caterpillar shares were trading Tuesday afternoon at $51.80, down 0.7%, while Navistar shares were moving at $37.43, down 2.2%.
-- Written by Scott Eden in New York
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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.
