Volkswagen’s vans enterprise Traton mentioned on Friday it had agreed to boost its takeover bid for Navistar to $44.50 per share from $43, closing in on a deal that might prolong its attain into North America.

A profitable merger would mix the MAN, Scania and Volkswagen vans manufacturers with Navistar to create a world producer, at a time when the trade is searching for methods to share the prices of creating low emissions expertise.

At $44.50 per share, Traton would pay about $3.7 billion for the shares in Navistar it would not already personal, valuing the U.S. enterprise as a complete at round $4.Four billion.

“Traton SE and the U.S.-American truck producer Navistar Worldwide Company, during which Traton already holds a stake of 16.8%, have right now reached settlement in precept that Traton will purchase by merger all shares in Navistar not already held by Traton, at a value of $44.50 per Navistar share,” Traton mentioned in a press release.

A deal hinges on finalizing due diligence, agreeing merger phrases and associated transaction paperwork and approval by the manager our bodies of Navistar and Volkswagen, Traton mentioned.

“There isn’t a assurance that the events will attain settlement on definitive transaction documentation, or as to the phrases thereof or that any transaction, if such settlement is reached, will in the end be consummated,” Traton cautioned. 

The announcement follows hours of negotiations, with Navistar’s board saying the supply would must be raised to $44.50 per share to win shareholders’ backing, hours earlier than Traton’s $43 per share supply was because of expire.

Traton had already raised its preliminary $35 per share supply final month.

Navistar shares had been final up 22.9% at $43.53. Traton shares ended up 1.6% at 18.02 euros.

Traton has struggled to win over billionaire activist investor Carl Icahn, whose fund held a 16.8% stake within the U.S. truck maker as of June 30, in line with Refinitiv Eikon Knowledge.

Icahn and two different activist funds, Mark Rachesky’s MHR Fund Administration and Gabelli Funds, collectively personal about 40% of Navistar’s shares, in line with Refinitiv information.