Daimler To Split Into Two Companies: Cars; Trucks And Buses -- February 3, 2021

Headlines:

• Daimler to spin off trucks, change name to Mercedes-Benz
• Daimler to spinoff part of its truck business through IPO
• Daimler to separate its trucks business from Merceded-Benz cars

So what's the story? From The WSJ:

• hopes truck-making spinoff boosts valuation of its businesses
• move highlights how conventional auto makers are under pressure to boost their stock-market value
• Daimler will hand over a "significant majority" of shares in its business that makes trucks and buses to shareholders by the end of the year:
• DMLRY up 6% after announcement
• will eventually make Mercedes-Benz the name of the car-making business, which in the future will focus on developing luxury electric cars and automotive software
• shares were up nearly 9% in trading in Frankfurt
• an extraordinary shareholders meeting is planned for 3Q21 to seek approval
• Tesla: market value: $827 billion
• Daimler: market value: $76 billion
• Daimler sells many more vehicles and generates hefty profits
• Daimler's trucks and buses recorded $30 billion in revenue; sole 244,554 trucks and 13,309 buses in first nine months of last year
• Volkswagen AG listed its truck business in an IPO in 2019, renaming it Traton SE. It now has market value of about $15 billion; Traton has been expanding to challenge Daimler and Volvo AB, the Swedish truck maker, and agreed last year to acquire US truck maker Navistar International;
  

Much more at the linked article. 

Motley Fool here. 

Daimler's plan calls for a separation of the automaker into two pure-play companies, with the majority listing Daimler Truck to focus on zero-emissions technology and software business. Management will begin preparing for a listing of Daimler Truck with the intentions that a significant majority stake in Daimler Truck will be granted to Daimler shareholders.

The goal is for the transaction and the listing of Daimler Truck (on the Frankfurt stock exchange) to be completed before the end of 2021. And once the spinoff is complete, Daimler aims to rename itself Mercedes-Benz.

From statista: 

From google: