Daimler to split into two companies, Daimler Truck to focus on electric and autonomous vehicles

Daimler AG DAI from Germany,
+ 8.91%,
The company behind well-known auto brands such as Mercedes Benz and truck and bus makers Freightliner and Thomas Built, on Wednesday announced plans to split into two stand-alone companies, deriving Daimler Truck, which will focus on electric vehicles. and autonomous driving. The other part of the business will be renamed Mercedes-Benz “at the appropriate time,” the company said, and aims to be “the world’s leading luxury car company committed to being a leader in electric propulsion. and automotive software, ”he said. Daimler Truck “will accelerate its path to zero emissions as the world’s largest producer of trucks and buses and a technology leader,” said Daimler. The board of directors of the company will begin to prepare the listing of Daimler Truck on the Frankfurt Stock Exchange, with the intention that “a significant majority stake in Daimler Truck will be distributed to the shareholders of Daimler”, he said. indicated. Both sides of the company “will be able to operate as efficiently as possible as independent entities, with strong net liquidity and free from the constraints of a conglomerate structure,” said Ola Källenius, Chairman of the Board of administration of Daimler and Mercedes-Benz. , in a report. Daimler stock rose 7% after the news. RBC Capital analysts said later Wednesday they “applaud” the decision to list a controlling stake in Daimler Trucks because “it is the key to getting a proper valuation.” Daimler Trucks’ future financial disclosures could include region-specific details, which Wall Street would appreciate, analysts said.