Report: VW Near Decision on IPO for Truck & Bus Business

Volkswagen Group’s supervisory board could approve plans by May 2 to launch an initial public offering for its Truck & Bus unit next year, sources tell Reuters.

VW confirms only that it is reviewing options for the 3-year-old division, which includes Scania and MAN heavy-truck operations. VW also owns 17% of U.S.-based Navistar International Corp. and is expected to eventually buy the company outright.

Reuters’ sources say VW would convert Truck & Bus GmbH into a public limited company ahead of an IPO. The company has been considering spinning off its commercial truck unit for months.

Last year the division reported €23.9 billion ($29.5 billion) in revenue and €1.7 billion ($2.1 billion) in pretax profit.