Daimler To Split Into Two Companies, Luxury Carmaker Mercedes-Benz Group And Daimler Trucks

by 9SIX

Daimler will be split into two separate entities, one focusing on passenger vehicles under the newly formed Mercedes-Benz Group moniker from next February, and the other on commercial vehicles as Daimler Trucks.

The decision to separate the commercial division was reached at an Extraordinary General Meeting today with the company to list Daimler Truck Holding AG on the Frankfurt Stock Exchange before the end of 2021. Shareholders are also being asked to approve the renaming of Daimler’s automotive holdings to “Mercedes-Benz Group AG,” which will be made up of Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and Mercedes-EQ.

“Daimler is splitting into two strong and independent companies,” said Ola Källenius, Chairman of the Boards of Management of Daimler AG and Mercedes-Benz AG. “By unlocking the full potential of both companies, we are establishing two undisputed innovation leaders who will set the pace in the transformation of their industries.”

“Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs,” he said. “Given this context, we believe they will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure”.

Daimler’s truck holdings include Freightliner, Fuso, Western Star, and others. Current shareholders will have a 65% stake in the new Daimler Truck Holding AG, which will then be listed on the stock exchange as an independent company.

As consideration for the spinoff, shareholders will receive one additional share in Daimler Truck Holding AG for every two shares they hold in the Daimler AG. Daimler, meanwhile, will hold a minority share of 35 percent in the truck company and plans to transfer 5 percent of that to its pension trust.

“Our company is making the right decision at the right time to sustainably safeguard success,” said Bernd Plschetsrleder, Chairman of the Supervisory Board of Daimler AG. “Daimler Truck and Mercedes-Benz will be able to master the transformation of the industry even more successfully with full entrepreneurial freedom and an independent management structure.”

Daimler expects that Daimler Truck Holding AG will be included in the enlarged DAX share index with 40 members in the first quarter of 2022. The name Mercedes-Benz Group AG renaming, meanwhile, will take effect on February 1, 2022.

Source: carscoops

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