Board Approves Separation Of Mercedes-Benz Truck And Car Businesses

The Board of Management and Supervisory Board of Daimler AG have given the go-ahead for the company's realignment and the ongoing roadmap. After the planned spin-off of Daimler Truck by the end of this year the shareholders of Daimler AG will hold a 65 per cent stake in the new Daimler Truck Holding AG, which will then be listed on the stock exchange as an independent company.

Daimler shareholders are to receive one additional share in Daimler Truck Holding AG, the global market leader for commercial vehicles, for every two shares they hold in Daimler AG. Daimler will retain a minority interest of 35 per cent in Daimler Truck Holding AG and intends to transfer 5 per cent to Daimler Pension Trust e.V., a registered association according to German law.

Also Read: Mercedes-Benz EQE Teased; Debut Expected At 2021 IAA Munich Motor Show​

This step is intended to emphasize the future focus of the company on the car and van business with the Mercedes-Benz brand as well as the sub-brands Mercedes-AMG, Mercedes-Maybach and Mercedes-EQ.

The Daimler shareholders will decide on this realignment of their company at an extraordinary general meeting on 1 October this year. In this context, a decision is also to be made on renaming Daimler AG as Mercedes-Benz Group AG as of 1 February 2022. This step is intended to emphasize the future focus of the company on the car and van business with the Mercedes-Benz brand as well as the sub-brands Mercedes-AMG, Mercedes-Maybach and Mercedes-EQ.

Ola Kallenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG said, "Daimler's realignment makes one success story into two. With this courageous step into a new future, we are creating added value with two pure-play companies for our customers, employees, shareholders and partners. In the future, the car and van business will focus even more on the premium and luxury segment and will consistently utilize its growth and profitability opportunities. As the most valuable luxury car brand, Mercedes-Benz aims for leadership in electric drive and vehicle software."

Daimler will retain a minority interest of 35 per cent in Daimler Truck Holding AG

With the listing on the Frankfurt Stock Exchange the shareholders of Daimler AG and Daimler Truck Holding AG will have the opportunity to decide independently on their investments in the two companies. The intended share transfer to Daimler's Pension Trust will increase the free float of Daimler Trucks Holding AG accordingly, a key indicator for inclusion in the leading German stock index DAX. Daimler will continue to hold a minority stake and will not exercise a controlling influence over Daimler Truck Holding AG. This is ensured through the conclusion of a deconsolidation agreement. The realignment of Daimler AG in two pure-play companies - both supported by a clear roadmap in terms of strategy, technology and performance targets - will offer an investment opportunity for their respective shareholders.

As an independent company, Daimler Truck Holding AG is the world market leader employing approximately 100,000 people at more than 35 main sites. Daimler Buses accounts for more than 17,000 of those employees. The truck business comprises the brands Mercedes-Benz, Freightliner, Western Star, FUSO and BharatBenz, and the bus brands are Mercedes-Benz, Setra, Thomas Built Buses and FUSO. Today's Daimler Trucks & Buses division generated revenue of €18.7 billion in the first half of fiscal year 2021. EBIT amounted to 1.9 billion Euros.