MUNICH, Germany — Traton SE, the truck and bus division of Volkswagen AG, has increased its offer for Navistar International shares to US$43 per share in cash.

Traton said Thursday the price represents a 23% increase from the $35 per share the company offered at the end of January.

Navistar stock jumped more than 20% on news of the latest offer, topping $43 in morning trade.

Confirming the bid, Navistar said its board of directors and management team are committed to exploring all avenues to maximize value.

“Consistent with its fiduciary duties, the board will carefully review the revised proposal from Traton in consultation with its advisors to determine the course of action that it believes is in the best interests of the company and its stakeholders.”

It added that Navistar shareholders do not need to take any action at this time, and there is no assurance that any transaction with Traton will occur.

Traton already holds 16.8% of Navistar.

“We continue to believe in the compelling strategic benefits that a complete merger of Traton and Navistar would produce,” said Traton CEO Matthias Grundler.

“This is why we are re-emphasizing our interest in the transaction in spite of the Covid-19 pandemic.”

Traton expects that the independent members of Navistar’s board of directors will now review the increased offer, the company said.

“The offer remains subject to a satisfactory due-diligence process as well as negotiation and a common understanding as regards the merger agreement,” it added.

JP Morgan and PJT Partners are acting as Navistar’s financial advisors, the company said.

• This story has been updated with Navistar confirming the latest offer from Traton.