Daimler AG DAI from Germany,
The company behind well-known automobile brands such as Mercedes Benz and truck and bus manufacturers Freightliner and Thomas Built said on Wednesday that it plans to split into two independent companies, breaking up Daimler Truck, which will focus on electric vehicles and autonomous. The other part of the deal will be renamed Mercedes-Benz “at the appropriate time,” said the company, and aims to be “the most prominent luxury car business in the world, committed to leadership in electric drive and software for cars,” he said. . Daimler Truck “will accelerate its path to zero emissions as the world’s largest producer of trucks and buses and a technology leader,” said Daimler. The company’s board will start preparing to list Daimler Truck on the Frankfurt stock exchange, with the intention that “a significant majority stake in Daimler Truck will be distributed to Daimler shareholders,” he said. Both sides of the business “will be able to operate more effectively as independent entities, equipped with strong liquidity and free from the constraints of a conglomerate structure,” said Ola Källenius, chairman of the board of directors of Daimler and Mercedes-Benz, in a statement. Daimler’s shares rose 7% after the news. Analysts at RBC Capital said on Wednesday that they “applauded” the decision to list a majority stake in Daimler Trucks as “this is key to getting a proper assessment”. Future financial disclosures by Daimler Trucks may include details specific to the region, which Wall Street would welcome, analysts said.
