Group’s industrial businesses to become two independent companies
Daimler flags a restructure of its industrial businesses leading to independence of its heavy- and light-vehicle arms.
Daimler will be spun off and listed separately on the German stock exchange (DAX) to focus on cars, with a view to being renamed Mercedes-Benz in due course.
Daimler Truck will push on towards zero emmissions, and the financial service teams of Daimler Mobility to be allocated to the respective ‘Cars & Vans’ and the ‘Truck & Bus’ businesses.
“The transaction and the listing of Daimler Truck on the Frankfurt stock exchange is expected to be complete before year-end 2021,” Daimler says.
The group notes that Daimler Truck will have fully independent management, stand-alone corporate governance including an independent chairman of the supervisory board, and is targeted to qualify as a DAX company.
“This is a historic moment for Daimler. It represents the start of a profound reshaping of the company,” Ola Källenius, chairman of the board of management of Daimler and Mercedes-Benz, says.
Källenius emphasises that the two entities “are different businesses with specific customer groups, technology paths and capital needs”.
“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 says.
Read about Daimler Truck’s involvement in a zero-emissions effort, here
Daimler Truck intends to “generate value for its shareholders by accelerating the execution of its strategic plans, raising its profitability and driving forward with its development of emissions-free technologies for trucks and buses”.
Daimler Truck chairman Martin Daum underlines the importance of the move and spruiks the expected benefits of autonomy for his firm.
“This is a pivotal moment for Daimler Truck,” Daum says.
“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
“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.”
The intended structure of the transaction would involve Daimler transferring the majority of Daimler Truck to its shareholders on a pro rata basis in accordance with existing shareholdings, but it intends to retain a minority shareholding.
Representation of Daimler in the Daimler Truck Supervisory Board will be in line with the intended deconsolidation.