German Manager Magazin: Demolition of Daimler: Mercedes Benz Group wants to keep 35 percent of Daimler Truck001003

Now the way is clear. Board of Directors and Supervisory Board of the Daimler-Group decided this Friday to split up the group. As already announced, the truck and bus business, which generated sales of 18.7 billion euros for the group in the first half of the year, is to be spun off into the newly founded Daimler Truck Holding AG. The spin-off should be completed by the end of the year.

The previous shareholders of Daimler AG will hold 65 percent of the new holding company – for every two of their shares they will receive one of the “world market leader in the commercial vehicle business”. Daimler itself will retain a 35 percent stake in the new group. Five percent of this is to be transferred to the Group’s own pension fund. This increases the free float, which should facilitate the inclusion of the then independent company in the leading index Dax. The group emphasized that it would not exercise any controlling influence in the future.

With the resolutions, CEO Ola Källenius (52) has taken an important step forward in the planned restructuring of Daimler. He only had it last week Announced the move away from the internal combustion engine. He now described the split as “brave”. The two “two pure play companies” (Källenius) should – similar to Siemens or Fresenius – being able to develop more successfully independently of one another than under one roof. Daimler’s supervisory board chairman Bernd Pischetsrieder (73) spoke of a “milestone in almost 140 years of history”.

Extraordinary general meeting on October 1st

At an extraordinary general meeting on October 1, the shareholders must vote on the plans. Then a decision will also be taken on the renaming of the previous Daimler AG on February 1, 2022: The car manufacturer will then operate as Mercedes-Benz Group AG.

In addition to the rest of the group, Truck Holding is also aiming for the Dax if it is expected to expand from 30 to 40 companies in 2022. It has around 100,000 employees, more than 17,000 of them in the bus business. The new group is to be headed in the future by Martin Daum (61). At the start, the parent company will have net liquidity of 5 billion euros by the end of the year, which, according to the company, should enable “a solid rating in the investment grade range”. In addition to Daum, the Swedish manager Karin Rådström (42) in particular should provide momentum on the board (here you can read a detailed portrait).

Joe Kaeser becomes supervisor

The long-standing Siemens CEO Joe Kaeser (64) is to become the supervisory board chairman of the new group. Stand by his side including the former Agco boss Martin Richenhagen (69), the digital expert Marie Wieck (60) and John Krafcik, (59) the former head of the autonomous driving specialist Google spin-off Waymo. For the parent company, compliance director Renata Jungo Brüngger (59) and CFO Harald Wilhelm (55) should join the committee.

The remainder – the future Mercedes-Benz Group AG – will be significantly smaller. It currently has around 170,000 employees. In the first half of 2021, the group segment generated sales of 55 billion euros and an EBIT of 7.5 billion euros.

The group emphasized that it would not exercise any controlling influence over Truck Holding. This will be ensured through the conclusion of a deconsolidation agreement. The Stuttgart-based company also assured Truck AG that it would have a solid capital base.

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