Volkswagen resumes preparations for truck unit IPO

FILE PHOTO: Visitors stand at the booth of Volkswagen's truck unit Traton Group, former Volkswagen Truck & Bus AG, in Hanover, Germany September 19, 2018. REUTERS/Fabian Bimmer/File Photo

BERLIN (Reuters) - Volkswagen said on Monday it would resume preparations for an initial public offering (IPO) of its trucks unit Traton, which it put on hold in March due to volatile market conditions.

The automaker had previously said it could list up to 25 percent of Traton in a deal that was expected to raise up to 6 billion euros ($6.7 billion) in Germany’s biggest share offering of the year.

“Current market assessments have encouraged us to take today’s decision,” Volkswagen finance chief Frank Witter said in a statement.

Traton CEO Andreas Renschler said: “Our groundwork has been excellent and we are now fully focused on a potential IPO before the summer break.”

Traton includes the MAN, Scania and Volkswagen trucks businesses. Volkswagen wanted to list it as part of its drive to create a global trucks business.

Reporting by Emma Thomasson; Editing by Mark Potter