Daimler, the maker of Mercedes-Benz cars and trucks, is set to be called Mercedes-Benz, while the truck and bus business will be spun off and listed separately as Daimler Truck. Moving ahead, it will be two independent companies with their own management and chairman.
This fundamental change in its structure is designed to unlock the full potential of its businesses in a zero-emissions, software-driven future, Daimler said.
Preparations for a separate listing of Daimler Truck will now begin, and a significant majority stake in Daimler Truck will be distributed to current Daimler shareholders on a pro rata basis. The transaction and the listing of the new company on the Frankfurt stock exchange is expected to be complete before the year ends.
“This is a historic moment for Daimler. It represents the start of a profound reshaping of the company. Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs. Mercedes-Benz is the world’s most valuable luxury car brand, offering the most desirable cars to discerning customers. Daimler Truck supplies industry leading transportation solutions and services to customers,” explains Ola Källenius, chairman of the board of management of Daimler and Mercedes-Benz.
“Both companies operate in industries that are facing major technological and structural changes. 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,” he added
“We have confidence in the financial and operational strength of our two vehicle divisions. And we are convinced that independent management and governance will allow them to operate even faster, invest more ambitiously, target growth and cooperation, and thus be significantly more agile and competitive,” Källenius said.
Daimler Truck intends to generate value for its shareholders by accelerating the execution of its strategic plans, raising profitability and driving forward with its development of emissions-free tech for trucks and buses.
“This is a pivotal moment for Daimler Truck. With independence comes greater opportunity, greater visibility and transparency. We will grow further and continue our leadership in alternative powertrains and automation. We have already defined the future of our business with battery-electric and fuel-cell trucks, as well as strong positions in autonomous driving. With targeted partnerships we will accelerate the development of key technologies to bring best-in-class products to our customers rapidly,” said Martin Daum, Daimler board member and chairman of Daimler Truck.
“Daimler Truck already has a solid financial basis, and our business model is robust. We will continue to work on our cash flow management and we know how to deal with industry market cycles – we have proven that again in the significant Covid-related global market reduction. We have clear strategies to raise our financial performance and accelerate our execution. We will use our strong and well-known global brands, our scale and our exceptional technology to deliver industry-leading returns,” Daum added.
Daimler Truck is the world’s largest truck and bus producer, with industry leading positions in Europe, North America and Asia. With more than 100,000 employees, its umbrella covers seven brands: BharatBenz, Freightliner, Fuso, Mercedes-Benz, Setra, Thomas Built Buses and Western Star. In 2019, around half a million trucks and buses were delivered to customers and operating profit was RM12.2 billion for Daimler Trucks and RM1.38 billion for Daimler Buses.
“We are convinced that the capital markets will appreciate the opportunity to invest in more clearly focused, pure-play businesses. The final decision on the spin-off has to be made by an extra-ordinary shareholder meeting of Daimler, which is planned to take place in Q3 2021,” said Manfred Bischoff, chairman of the supervisory board of Daimler.
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