Daimler splits up and goes public on the truck division

Car manufacturer Daimler is planning a complete renovation. In the course of this, the truck division is to be listed on the stock exchange. The goal for Daimler Truck is to complete the listing in Frankfurt this year.

The car manufacturer Daimler wants to reposition itself completely and divide the business between two independent companies. In the future, there will only be Mercedes-Benz AG for cars and vans and Daimler Truck AG for trucks and buses, as the group announced on Wednesday. In addition, Daimler Truck is set to go public this year – a step that investors have long called for and expected.

“Both companies operate in industries that are undergoing extensive technological and structural changes,” said Daimler CEO Ola Källenius. “You can shape this change much more effectively if you act as independent units – with strong net liquidity and without the restrictions of a conglomerate structure.”

So far, Mercedes-Benz AG, Daimler Truck AG and Daimler Mobility AG have been united under the umbrella of Daimler AG and are wholly owned by Daimler AG. The structure was only introduced in this way in 2019. The financial and mobility services are now to be absorbed by the other two companies, and Daimler AG will disappear in the long term.

“We believe in the financial and operational strength of our two industrial business areas,” said Källenius. “And we are convinced: With an independent management and an independent governance structure, both units will be able to act even faster in the future, invest more ambitiously and drive growth and cooperation in a more targeted manner – all of this will make them significantly stronger and more competitive.”

The intention is that the majority stake will be transferred to today’s Daimler shareholders, it said. Daimler itself will only hold a minority in the future. In addition, the aim is to meet the criteria for a listing of Daimler Truck in the leading share index Dax. According to its own information, Daimler Truck is the world’s largest manufacturer of trucks and buses with seven brands, more than 100,000 employees and most recently sales of almost 45 billion euros.

The final decision on the planned spin-off would have to be made at an extraordinary general meeting in the third quarter of 2021, it said. “Mercedes-Benz and Daimler Truck are embarking on this transformation with enormous strength,” said Manfred Bischoff, Chairman of the Supervisory Board. “We are convinced that they will be even stronger as independent companies and that they will be able to serve their respective customers even better.”

Author: Nabeel K
Email: nabeel@wheelsjoint.com

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