Volkswagen is about to hire four banks for truck unit IPO

Volkswagen is near to hiring Citigroup, Deutsche Bank, Goldman Sachs and JP Morgan to assist with the possible stock market listing of its truck unit Traton, two people knowledgeable with the matter informed Reuters on Monday.

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

VW prepares to convert Traton’s legal framework to a Societas Europaea (SE) and to shortly mandate investment banks and legal advisers for a potential initial public offering, Volkswagen stated at the time.

VW, JP Morgan, Deutsche Bank and Goldman Sachs refused to comment. Officials were not immediately available for discussion.

Bloomberg previously on Monday reported that the banks were probably to be mandated for the IPO.

Volkswagen is aiming at the proceedings of over 6 billion euros ($7 billion) with a potential listing of its truck and bus subsidiary, the division’s chief executive had stated previously this year.

Volkswagen has said in the past that it is thinking about a listing or partial listing of the trucks division, but that this would not happen this year.

VW has strategies to build a global trucks business by combining its MAN and Scania divisions to challenge competitors Daimler and Volvo.

A flotation could also permit Volkswagen Truck & Bus to build a war chest to entirely buy out Navistar, a U.S. truck maker in which it already controls a 16.85 percent stake.