Daimler changes name and splits into two companies

Daimler is planning a major restructuring. The group will ‘eventually’ be renamed Mercedes-Benz. Daimler Trucks, responsible for the production of trucks and buses, must become separate from Mercedes-Benz. With this step Daimler wants to stimulate investor interest.

Daimler wants to split the group to ensure that Mercedes-Benz and Daimler Trucks can both move more in their own direction. Daimler is renamed Mercedes-Benz and Daimler Trucks will also be listed as a separately listed company. This should, among other things, ensure that Mercedes-Benz Cars and Vans becomes more attractive to investors. CEO Ola Källenius expects investors Das Haus increasingly seen as a worthy competitor to Tesla in the field of EVs and that this will eventually lead to an increase in the value of the company. The first effect of this was in any case already visible, because after the announcement of the CEO, the Daimler share shot up by 9 percent.

Analysts see the decision as a logical step. According to them, Daimler Trucks means little for the value of the combined share. In addition, it is believed that it is not really logical, from an industrial and cultural point of view, to combine both companies. Källenius says he is further confident that both divisions can stand on their own two feet.

The shareholders must first slam the plan before Daimler can finally implement the split. This will probably not happen until the end of the third quarter, after which the two companies will individually appear on the stock exchange at the end of 2021 if all goes according to plan.

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