TNI || New Delhi || 2nd Oct 2021
The spinoff of Daimler AG’s Truck Division from Mercedes-Benz has been approved by the company’s shareholders.
The move will allow the largest truck maker in the world to react faster to the change in the industry and focus more on the low emission technologies that are transforming the high commercial vehicle landscape.
The voting, which was held online, also meant that Stuttgart-based Daimler would be renamed Mercedes-Benz Group AG from February 2022.
The CEO of Daimler, Ola Kallenius said that by unlocking the full potential of both the automobile segment giants, two undisputed innovation leaders would get established who would undoubtedly transform their respective verticals.
Another reason for this spinoff to happen is that luxury cars and trucks are pursuing varied technological advances.
While Mercedes-Benz is focusing on battery-powered cars, trucks are showing an inclination towards manufacturing hydrogen-powered vehicles which would prove to be beneficial for long-haul transport.
Due to this move, both companies will be able to make independent decisions in a rapidly changing industrial scenario.
Needless to say, because of the spinoff, the two companies’ worth will be more separately than they are together.
In case of division of shares, Daimler’s shareholders will get a piece in Daimler Truck Holding AG for every two shares they hold.
The listing of the new company will take place on the Frankfurt Stock Exchange later this year.