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Daimler Truck Holding AG has received the go-ahead to become a stand-alone company from the Board of Management and Supervisory Board of Daimler AG.
After the planned spinoff of Daimler Truck by the end of this year, shareholders of Daimler AG will hold a 65% stake in the new company, which will be listed on the stock exchange as an independent company. Daimler shareholders will get one additional share in Daimler Truck Holding AG for every two shares they hold in Daimler AG (OTC: DDAIF).
Daimler Truck Holding AG is the world market leader in commercial truck manufacturing and sales, employing approximately 100,000 people at more than 35 main locations. The truck business comprises the brands Mercedes-Benz, Freightliner, Western Star, FUSO, and BharatBenz. Daimler Buses accounts for more than 17,000 employees for the Mercedes-Benz, Setra, Thomas Built Buses, and FUSO brands.
No more traveling in a convoy
"Our future independence offers us great opportunities and we will benefit consistently from them," said Martin Daum, chairman of the Board of Management of Daimler Truck AG, who will also chair the successor company's board of management..
"To use an image from our industry: Up until now, we had to travel in a convoy. In the future, we will be able to plan our own route and choose the best route for us. This will enable us to make faster progress," Daum said in a press release Friday following the vote.
As a division of Daimler AG, Daimler Trucks & Buses generated revenue of 18.7 billion euros ($22.2 billion) in the first half of fiscal year 2021. Earnings before interest and taxes was 1.9 billion euros ($2.26 billion).
Shareholders vote Oct. 1
Daimler shareholders will vote on the separation on Oct. 1. If approved, Daimler AG will be renamed Mercedes-Benz Group AG as of Feb. 1, 2022. The Mercedes-Benz Group will focus on the car and van business with the Mercedes-Benz brand as well as the sub-brands Mercedes-AMG, Mercedes-Maybach, and Mercedes-EQ.
"With the spinoff, the two independent listed companies will be able to fully concentrate on their differing customer groups and therefore become more efficient and more successful," said Bernd Pischetsrieder, chairman of the Supervisory Board of Daimler AG.
Added Ola Källenius, chairman of the Board of Management of Daimler AG and Mercedes-Benz AG: "Daimler's realignment makes one success story into two pure-play companies."
Daimler will retain a 35% stake in Daimler Truck but does not plan to exercise a controlling influence. It intends to transfer 5% of its stake to Daimler Pension Trust e.V., which increases the free float of shares in Daimler Truck AG and helps clear the way for its inclusion in the German DAX stock index.
Daimler AG will equip Daimler Truck Holding AG with net liquidity of 5 billion euros ($5.94 billion) until the end of the year with the goal of receiving a solid investment-grade rating.
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