Daimler to rename as Mercedes-Benz after spin-off of truck business
Daimler is planning to split into two separate companies for cars and trucks in a “profound reshaping of the business” to enable their increasingly divergent work.
The plans by the Supervisory Board and the Board of Management include the spin-off and the separate listing of the Daimler Trucks business on the Frankfurt stock exchange. The transaction is expected to complete before the end of the year and shareholders would have a majority stake in the trucks business, but Daimler would retain a minority shareholding.
Daimler would then rename in due course as Mercedes-Benz and focus on vans as well as passenger cars, the latter as the “world’s pre-eminent luxury car business, committed to leading in electric drive and car software”.
At the same time, Daimler Truck will “accelerate its path towards zero emissions as the world’s largest truck and bus producer and technology leader”.
The shake-up is said to be needed as the two businesses go down increasingly disparate paths, , including on zero-emission technologies.
Ola Källenius, chairman of the Board of Management of Daimler and Mercedes-Benz, said: “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. 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.”
All further details of the intended spin-off will be presented to the shareholders at an extra-ordinary shareholder meeting in Q3 2021, in order to obtain their mandatory approval to the plan.