By William Boston 

BERLIN -- Daimler AG said it will split its Mercedes-Benz car division and its Daimler Trucks division into two separate companies, aiming to spin off the trucks business to shareholders -- a move that highlights how conventional auto makers are under pressure to boost their stock-market value.

Daimler said Wednesday it would spin off a "significant majority" of shares in Daimler Trucks to existing shareholders by the end of the year and would eventually rename the car-making business Mercedes-Benz.

Investors have long lobbied Daimler to split, saying two separate entities would unlock more value in each business compared to their value as a conglomerate.

Daimler shares jumped on the announcement, rising nearly 9% as shareholders applauded the news.

(More to Come)

Write to William Boston at william.boston@wsj.com

(END) Dow Jones Newswires

February 03, 2021 11:42 ET (16:42 GMT)