Daimler Truck rolls into inventory market after Mercedes break up

Daimler Truck launched on the Frankfurt Stock Exchange on Friday after the heavy-goods operation was spun off from its holding group, quickly to be renamed as Mercedes-Benz.

The new group is concentrating on an entry into into the DAX, when the 40-member blue-chip index is subsequent up to date within the first quarter of 2022.

Daimler Truck was buying and selling at 28 euros on Friday morning, shortly after the open of the inventory trade, valuing the brand new firm at 23 billion euros ($26 billion).

The inventory market entry was the “starting line” stated Daimler Truck CEO Martin Daum in an announcement, including the brand new group would use its independence to focus on “more success in the future”.

Its former residence Daimler shall be be renamed Mercedes-Benz after its well-known luxurious automobile model in February subsequent 12 months.

The breakup of the group and the brand new moniker have been accepted in October by shareholders, who shall be issued with one share in Daimler Truck for each two they maintain in Mercedes.

The reorganisation was carried out with an eye fixed to taking over the completely different technological challenges by the 2 firms because the auto sector strikes away from combustion engines.

While battery know-how is important to the way forward for passenger vehicles, “hydrogen will play an important role in the truck department”, stated Daimler CEO Ola Kallenius, who will keep on at Mercedes.

In total, 65 % of shares within the new entity shall be handed on to Daimler shareholders, with the remaining 35 % held by the company itself.

The former group will proceed to be represented on the supervisory board of Daimler Truck, although the day-to-day operation of the 2 firms will largely be separate.

Daimler Truck, which employs round 100,000 for the manufacturing of lorries, busses and specialised automobiles, is concentrating on a “two-digit” profit margin on gross sales by 2025.

In 2021, the brand new group expects a determine within the area of six to eight %, as a scarcity of semiconductors, an integral part, has raised costs for the business.

© 2021 AFP