DaimlerChrysler AG (NYSE: DCX) and Western Star Trucks Holdings (Amex: WSH) have announced that their respective boards approved a definitive agreement for DaimlerChrysler's subsidiary Freightliner LLC, the leading heavy-truck manufacturer in North America, to acquire 100 percent of the outstanding stock of Western Star Trucks Holdings, a Canadian-based manufacturer of premium trucks and buses.

In an agreement reached with Western Star, Freightliner will offer to purchase the outstanding shares at C$42 per share, for an approximate purchase price of C$670 million.