Daimler Delays Ride-Hailing Joint Venture With BMW
07 December 2018 - 03:19AM
Dow Jones News
By Max Bernhard
Daimler AG (DAI.XE) said Thursday that its planned ride-hailing
joint venture with BMW AG (BMW.XE) will be established later than
expected, leading it to cut the earnings outlook for its financial
services unit.
"Completion of the transaction, which was originally planned for
2018 and continues to be pursued by both partners, can no longer be
achieved in the remaining weeks of this year," Daimler said.
The two German manufacturers, who usually compete in the premium
auto segment, are continuing talks with U.S. antitrust authorities
and now expect to close their deal at the beginning of next year,
Daimler said.
Daimler had expected the deal to result in a significant
positive earnings contribution for its financing unit, which it
said will now be realized in 2019. The company therefore cut its
2018 outlook for the division. It now expects Daimler Financial
Services' earnings before interest and taxes to be significantly
lower than in the previous year.
Daimler's earnings forecast remains unchanged, it said.
Daimler and BMW decided to join forces in March to better handle
competition from technology giants such as Uber Technologies Inc
(UBERI.XX) and China's Didi Chuxing Technology Co. They plan to
combine their car-sharing units, as well as there ride-hailing and
electric-vehicle-charging services, in a new joint venture to be
headquartered in Berlin.
The European Union has already approved the deal.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
December 06, 2018 11:04 ET (16:04 GMT)
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