Germany’s Daimler AG
DAI,
the company behind well-known auto brands such as Mercedes Benz and truck and bus makers Freightliner and Thomas Built, said Wednesday it plans to split into two standalone companies, spinning off Daimler Truck, which will focus on electric vehicles and self-driving. The other part of the business will be renamed Mercedes-Benz “at the appropriate time,” the company said, and aim to be the “world’s preeminent luxury car business, committed to leading in electric drive and car software,” it said. Daimler Truck “will accelerate its path towards zero emissions as the world’s largest truck and bus producer and technology leader,” Daimler said. The company’s board will start preparing for listing Daimler Truck on the Frankfurt stock exchange, with the intention that “a significant majority stake in Daimler Truck will be distributed to Daimler shareholders,” it said. The two sides of the business “will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure,” said Ola Källenius, chairman of the Board of Management of Daimler and Mercedes-Benz, in a statement. Daimler stock rose 7% after the news. Analysts at RBC Capital said later Wednesday they “applaud” the decision to list a majority stake in Daimler Trucks as “this is key in getting a proper valuation.” Future financial disclosures by Daimler Trucks could include region-specific detail, which Wall Street would welcome, the analysts said.