WARRENVILLE, Ill. — Navistar International Corporation has announced the Brazilian anti-trust regulatory authority has approved its South American engine subsidiary’s acquisition of MWM Motores Diesel Ltda (MWM), a major Brazilian diesel engine producer.
The company announced April 14 that International Engines South America had acquired MWM, but that only minimal synergies could be achieved prior to anti-trust approval. Purchase price was not disclosed.
MWM produces a broad line of medium and high speed diesel engines ranging from 50 to 310 horsepower for use in pick-ups, vans, light and semi-heavy trucks, as well as agricultural, marine and electric generator applications. OEM customers include General Motors, Volkswagen and Nissan. Annual production exceeds 85,000 engines with 2004 revenues for the privately held company of approximately $370 million.
“While we have already seen some benefits in both global sales and sourcing opportunities, final approval allows us to accelerate the full implementation of our other synergistic opportunities,” said Daniel C. Ustian, Navistar chairman, president and CEO.
Navistar’s South American engine operations are now operated as MWM International Indstria de Motores da America do Sul Ltda., with Waldey Sanchez, formerly managing director of International’s South American engine business, serving as president and CEO.
Navistar entered the South American market in March 1999, when it acquired a 50 per cent interest in a company that was renamed Maxion International Motores S.A. In January 2001, Navistar became the sole owner of Maxion International Motores and shortly thereafter, the company was renamed.
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