Daimler evaluates spin-off and listing of truck business

Daimler said on Wednesday it had decided to evaluate a spin-off of its truck and bus business and begin preparations for a separate listing of Daimler Truck.

In a statement, the company said that the Supervisory Board and the Board of Management of Daimler on Wednesday agreed to evaluate a spin-off of its Truck and Bus business and begin preparations for a separate listing of Daimler Truck.

"As a result of the spin-off, a significant majority stake in the Daimler Truck business would be distributed to Daimler AG’s shareholders allowing for a deconsolidation," Daimler said.

"A spin-off would require the approval of an extraordinary shareholders’ meeting of Daimler AG, which could be held at the end of Q3 2021."

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 statement also revealed that Daimler Truck will accelerate its path towards zero emissions as the world’s largest truck and bus producer and technology leader.

“In this case, the transaction and the listing of Daimler Truck at the Frankfurt stock exchange are planned to be completed before year-end 2021,” the company added.

“This is a historic moment for Daimler. 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. 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.

“We have confidence in the financial and operational strength of our two vehicle divisions. 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."

The firm also said that further details would be provided at its extraordinary shareholder meeting scheduled for the third quarter of 2021.