Daimler shareholders to approve spin-off, IPO of truck subsidiary

Kehl, Germany (dpa) – Daimler shareholders came together on Friday to approve a planned break-up of the company that will see the Daimler Truck subsidiary spun off and listed on the stock market as a separate entity.

The extraordinary meeting started at 10 am (0800 GMT) online due coronavirus-related restrictions. The majority of shareholders is expected to sign off on the “historic” step, Daimler said before the meeting.

For some time there has been a debate about spinning off the truck business into a separate entity. Proponents argue it will have more independence and therefore become more profitable.

“We will secure existing jobs and create new ones,” Daimler CEO Ola Kaellenius told shareholders at the meeting, adding that the car and the truck and bus divisions were very different and were better off as separate entities.

According to local media reports, the plan was devised in view of the profound upheaval in the automotive industry related to the promotion of electric vehicles.