Daimler Truck goes public after Mercedes split – expat guide to Germany
Daimler Truck was launched on the Frankfurt Stock Exchange on Friday after the division of the heavy-duty activity of its holding company, which will soon be renamed Mercedes-Benz.
Truck horns accompanied the ringing of the market opening bell by Daimler Truck Managing Director Martin Daum.
Daimler Truck opened the day at 28 euros, valuing the company at 23 billion euros ($ 26 billion). The share price rose to around 30 euros at the stock market price before falling again during the afternoon.
The IPO was a “historic day,” Daum told AFP, adding that the industry was going through “the biggest upheaval in its history” as it ditched combustion engines.
Daimler Truck is targeting DAX entry, with the next 40-member top-notch index update in the first quarter of 2022.
The former home of the new truck group, Daimler, will be renamed Mercedes-Benz after its famous luxury car brand in February next year.
The dismantling of the German auto giant and the new nickname was approved in October by shareholders, who will receive one Daimler Truck share for two they own in Mercedes.
The reorganization was carried out with the aim of meeting the various technological challenges of the two companies as the automotive sector moves away from combustion engines.
– Future performance –
While battery technology is essential for the future of passenger cars, âhydrogen will play an important role in the truck department,â said Ola Kallenius, CEO of Daimler, who will remain at Mercedes-Benz.
More sustainable vehicles were the goal of both companies “but the roads we will take to get there are different,” Kallenius told AFP when the market opened.
In total, 65% of the shares of the new entity will pass to Daimler shareholders, with the remaining 35% being held by the company itself.
The former group will continue to be represented on the supervisory board of Daimler Truck, although the day-to-day operations of the two companies are largely separate.
Daimler Truck, which employs around 100,000 people for the production of trucks, buses and specialty vehicles, is targeting a âdouble-digitâ profit margin on its sales by 2025.
In 2021, the new group expects a figure of the order of six to eight percent, as the shortage of semiconductors, an essential component, has pushed up prices for the industry.
Daimler fell 15.1% at the opening of the exchange, a technical adjustment linked to the split of the truck group. The price climbed 1.37% during the day to 74.20 euros at 2:10 p.m. GMT.
ys-sea / dlc / rl