By Kim Richters

 

Daimler AG is planning to split into two separate companies and aims to list its trucks business on the stock market before the end of this year, in a bid to ready itself for "a zero-emissions, software-driven future," it said Wednesday.

One business will focus on commercial vehicles, while the other one will concentrate on cars and will be renamed Mercedes-Benz when the time is right, the German auto maker said.

Resources and employees for Daimler's mobility unit will be transferred to both Mercedes-Benz and Daimler Truck, it said.

As for the spinoff of the trucks business, the car maker plans to distribute a significant majority stake to shareholders of Daimler, and will seek approval to list it on the Frankfurt stock exchange at an extraordinary shareholders' meeting at the end of the third quarter.

Daimler said it plans to keep a minority shareholding in Daimler Truck, which will have a fully independent management and stand-alone corporate governance, and will invest 1.5 billion euros ($1.81 billion) in the trucks business.

"Both companies operate in industries that are facing major technological and structural changes," said Ola Kallenius, chairman of Daimler's managenment board. He called the plans "a historic moment for Daimler."

"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," he said.

At 1617 GMT, shares in Daimler traded 8.8% higher at EUR64.51.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

February 03, 2021 11:56 ET (16:56 GMT)

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