Skip to main content

Volkswagen AG is close to hiring Citigroup, Deutsche Bank AG, Goldman Sachs Group Inc. and JP Morgan Chase & Co. to help with the potential stock market listing of its truck unit Traton, two people familiar with the matter told Reuters on Monday.

Volkswagen said last month that Traton should by year-end be in shape for a potential stock market listing, which is expected to take place in mid-2019.

VW plans to convert Traton’s legal structure to a Societas Europaea (SE) and to shortly mandate investment banks and legal advisers for a possible initial public offering, Volkswagen said at the time.

VW, JP Morgan, Deutsche Bank and Goldman Sachs declined to comment. Officials at Citi were not immediately available for comment.

Bloomberg earlier on Monday reported that the banks were likely to be mandated for the IPO.

Volkswagen is targeting proceeds of more than €6-billion ($8.9-billion) with a potential listing of its truck and bus subsidiary, the division’s chief executive had said earlier this year.

Volkswagen has said in the past that it is considering a listing or partial listing of the truck division, but that this would not happen in 2018.

VW has plans to build a global trucks business by integrating its MAN and Scania divisions to challenge rivals Daimler and Volvo.

A flotation could also allow Volkswagen Truck & Bus to build a war chest to completely buy out Navistar, a U.S. truck maker in which it already owns a 16.85-per-cent stake.

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe