In a high stakes move by the Daimler AG Board of Management and Supervisory Board (ticker symbol DAI) to separate two very different businesses and insulate the parent company from financial threats that Global Warming, connected and autonomous vehicles and automaker upheavals are causing, approved making Mercedes-Benz Cars and Daimler Truck independent companies.
Daimler shareholders will decide on this realignment of their company at an extraordinary general meeting on 1 October this year. 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. See AutoInformed.com on:
- Death of the Diesel: Daimler in US to Pay $1.5B for Noxious Diesel Emissions Fraud;
- Daimler to Spin-Off Daimler Truck into Separate Company;
- Cash Crunch? BMW and Daimler to Sell PARK NOW Joint Venture to EasyPark Group; Daimler Q2 Results – Group Net Profit of €3,704 million;
- Mercedes-Benz – New Platforms Electric Only From 2025;
- First Look: Mercedes EQS All-Electric Sedan
Exec Summary of Proposals
- Daimler shareholders receive one additional Daimler Truck Holding share for every two shares held
- Daimler will retain a minority stake of 35% in Daimler Truck Holding AG, of which a stake of 5% will be transferred to the Daimler Pension Trust
- Daimler commits to Daimler Truck Holding AG’s independence and sound capitalization
- Target of an investment-grade rating and a DAX listing for Daimler Truck Holding AG
- An extraordinary general meeting is planned for 1 October 2021
- Initial listing of Daimler Truck Holding AG targeted for year’s end
“Today is a milestone in the nearly 140-year history of this unique company. Throughout Daimler’s history, the courage to fundamentally reinvent the company has been the key to its success. With the spin-off, 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.
Not surprisingly Daimler is aggressively selling the deal: “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 de-consolidation 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,” a release today 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,” claimed Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.