Daimler splits truck business from car division

Wednesday, 03. February 2021 18:37

Daimler AG is set to separate the Daimler Truck business from Mercedes-Benz Cars & Vans, the company announced on Wednesday. Furthermore, the German vehicle manufacturer decided to begin preparations for a separate listing of Daimler Truck, unveiling that "a significant majority stake in Daimler Truck will be distributed to Daimler shareholders."

"Both companies operate in industries that are facing major technological and structural changes. 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," Daimler Chairman Ola Kallenius said in a statement, adding the split represents "a historic moment" for the company.

Daimler's shares closed Wednesday's session surging 8.90% following the announcement.

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