Daimler to split into two; majority listing of Daimler Truck on the cards

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German vehicle manufacturer Daimler says it plans a fundamental change in its structure, "designed to unlock the full potential of its businesses in a zero-emissions, software-driven future".  The supervisory board and the board of management of Daimler says they have agreed to evaluate a spin-off of its truck and bus business, and to begin preparations for a separate listing of Daimler Truck.
German vehicle manufacturer Daimler says it plans a fundamental change in its structure, "designed to unlock the full potential of its businesses in a zero-emissions, software-driven future".

The supervisory board and the board of management of Daimler says they have agreed to evaluate a spin-off of its truck and bus business, and to begin preparations for a separate listing of Daimler Truck.

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The Daimler Truck business will have independent management, standalone corporate governance, including an independent chairperson of the supervisory board, and is targeted to qualify as a DAX company.

The DAX is a blue-chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange.

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The transaction and the listing of Daimler Truck on the Frankfurt exchange is expected to be complete before the end of the year.

In addition, it is also Daimler's intention to rename itself as Mercedes-Benz "at the appropriate time".

Two Independent Companies

"This is a historic moment for Daimler. It represents the start of a profound reshaping of the company," says Ola Källenius, chairperson of the board of management of Daimler and Mercedes-Benz.

"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," notes Källenius.

"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…
Irma Venter
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