Daimler Plans Split Into Two Companies, Listing of Trucks Business -- Update
By Kim Richters
Daimler AG is planning to split into two separate companies and
aims to list its trucks business on the stock market before the end
of this year, in a bid to ready itself for "a zero-emissions,
software-driven future," it said Wednesday.
One business will focus on commercial vehicles, while the other
one will concentrate on cars and will be renamed Mercedes-Benz when
the time is right, the German auto maker said.
Resources and employees for Daimler's mobility unit will be
transferred to both Mercedes-Benz and Daimler Truck, it said.
As for the spinoff of the trucks business, the car maker plans
to distribute a significant majority stake to shareholders of
Daimler, and will seek approval to list it on the Frankfurt stock
exchange at an extraordinary shareholders' meeting at the end of
the third quarter.
Daimler said it plans to keep a minority shareholding in Daimler
Truck, which will have a fully independent management and
stand-alone corporate governance, and will invest 1.5 billion euros
($1.81 billion) in the trucks business.
"Both companies operate in industries that are facing major
technological and structural changes," said Ola Kallenius, chairman
of Daimler's managenment board. He called the plans "a historic
moment for Daimler."
"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 said.
At 1617 GMT, shares in Daimler traded 8.8% higher at
Write to Kim Richters at firstname.lastname@example.org
(END) Dow Jones Newswires
February 03, 2021 11:56 ET (16:56 GMT)
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