© Daimler AG
Daimler announced it is preparing to spin off its Truck and Bus business and call it Daimler Truck, and eventually rename itself as Mercedes-Benz.
“Daimler plans a fundamental change in its structure, designed to unlock the full potential of its businesses in a zero-emissions, software-driven future,” wrote Daimler in a statement.
“The Supervisory Board and the Board of Management of Daimler today agreed to evaluate a spin-off of its Truck and Bus business and begin preparations for a separate listing of Daimler Truck.
“It is intended that a significant majority stake in Daimler Truck will be distributed to Daimler shareholders. The Daimler Truck business 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.
“The transaction and the listing of Daimler Truck on the Frankfurt stock exchange is expected to be complete before year-end 2021. In addition, it is also Daimler’s intention to rename itself as Mercedes-Benz at the appropriate time.”
Chairman of the Board of Management of Daimler and Mercedes-Benz Ola Källenius explained the move.
“This is a historic moment for Daimler,” the Swede said.
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“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. 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.”
Källenius believes the switch to independent management will allow both divisions to thrive.
“We have confidence in the financial and operational strength of our two vehicle divisions,” Källenius continued.
“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.”
