New Reporter
01-10-21, 20:39
The star is split - that means the historic return of Mercedes
One star for two companies
10/01/2021
https://i.imgur.com/vKaSbzg.jpg
The Daimler shareholders are to vote on the separation into two independent companies for trucks and cars. Mercedes wants to be more flexible with it, but is also making itself more susceptible to takeovers.
By Lothar Gries
After a long period of preparation, the time has finally come: Daimler's truck and bus business is being released into entrepreneurial independence. In the future, Mercedes-Benz will stand for cars and vans, and Daimler trucks for trucks and buses. This Friday, the shareholders are to vote on the separation. There are no doubts that they will agree to the planned dismantling of the traditional group.
It is expected that an overwhelming majority will vote in favor of the project, as the shareholders are among the potential beneficiaries of the separation. You will receive shares in the new company, Daimler Truck, at a ratio of 2: 1. So whoever owns 20 Daimler shares so far will receive ten from Daimler Trucks. The securities are to be listed on the stock exchange in December. Experts assume that the stock market value of the two separate stock corporations will be higher than Daimler's current valuation. The elimination of the "conglomerate discount" alone could mean that Mercedes alone could be worth as much as Daimler today: around 82 billion euros.
Traditional company disappears
A lucrative business for Daimler shareholders. But there are also reflective tones from the industry. "One of the most successful, traditional and largest German companies disappears forever from the scene," comments car expert Willi Diez in a book that has not yet been published on the radical restructuring at Daimler. In fact, Daimler AG is to be renamed Mercedes-Benz Group AG on February 1, 2022. The name Daimler disappears from the passenger car sector and only remains in the truck business.
Nevertheless, the company continues to exist, albeit in two independent divisions. In addition, the star will continue to adorn cars from Mercedes-Benz as well as commercial vehicles. And the truck and bus division will not initially be released completely into independence. In a conversation with the "Frankfurter Allgemeine Sonntagszeitung", Daimler CEO Ola Källenius assured that the car manufacturer would "hold a protective hand over Daimler Trucks" through a planned minority stake. "If something happens in the market that is not in the interests of Daimler Trucks, then we are there," said Källenius. However, he did not want to determine how high the minority stake would be.
Chinese largest single shareholder
At present, 60 percent of Daimler shares are held by so-called institutional investors, i.e. fund companies, insurance companies and banks. 20 percent of the well over one billion shares belong to private investors. The largest single shareholders include the Kuwait sovereign wealth fund (6.8 percent) and the Chinese investor Li Shufu (Geely). This holds the largest share in Daimler (9.7 percent) through Tenaciou3 Prospect Investment (since 2018). In July 2019, the Chinese BAIC Group also acquired five percent of the voting rights in the car manufacturer.
It is not yet clear whether this distribution will change after the truck and bus divisions are separated. Daimler Truck boss Martin Daum does not see any completely new challenges for the business as a result of the planned IPO. The ones that have to be overcome have not changed: the ups and downs of the economy, especially now in connection with the corona crisis, the cost structure and the transformation of the industry itself.
Not a loss maker
As an independent company, Daimler Truck can optimally shape its future, according to Daum. "We are a strong company that can exist alone at any time," emphasized Daum. But there are areas where the costs are too high. You have to "slim down". This also includes downsizing.
At the same time, the company will gain speed and flexibility through the splitting up of the Daimler Group and will be able to better advance the development of the technologies that are most important for the truck sector. "The time of large bureaucratic conglomerates is over," said Daum. According to its own information, Daimler Truck is the world's largest manufacturer of trucks and buses with seven brands, more than 100,000 employees and a recent turnover of almost 45 billion euros. Around 300,000 people work for Daimler worldwide.
Mercedes makes itself vulnerable
For the industry expert Ferdinand Dudenhöffer, the split is only logical. "It fits in with the times," he said, referring to similar decisions made by other car companies, especially Volkswagen. The businesses of the various branches have little to do with each other; In addition, it was recognized that it was better to focus on the core business and not strive for the all-encompassing mobility group.
Market observers consider it unlikely that Daimler Trucks could arouse the desires of competitors or major activist investors; the entire industry is still too much in upheaval for that. Apparently the Daimler managers see it that way too. You have provided Daimler Truck with cash of 1.5 billion euros. According to Daum, the reserve should enable the company to strike quickly on good opportunities, i.e. to take over.
For some experts, concerns are triggered by the remaining car business. "The spin-off of the truck division makes Daimler more susceptible to activist attacks or takeover attempts," warns Ingo Speich from the Sparkasse fund company Deka Investment. The widespread skepticism about the future viability of Mercedes-Benz AG is based on the fact that it is a "small player in the global automotive market", says economics professor Diez. The truck business, on the other hand, is not doing so badly in the long term, as its fundamentals are predictable. "As long as business is going on, goods have to be transported," is the sober conclusion of the expert.
One star for two companies
10/01/2021
https://i.imgur.com/vKaSbzg.jpg
The Daimler shareholders are to vote on the separation into two independent companies for trucks and cars. Mercedes wants to be more flexible with it, but is also making itself more susceptible to takeovers.
By Lothar Gries
After a long period of preparation, the time has finally come: Daimler's truck and bus business is being released into entrepreneurial independence. In the future, Mercedes-Benz will stand for cars and vans, and Daimler trucks for trucks and buses. This Friday, the shareholders are to vote on the separation. There are no doubts that they will agree to the planned dismantling of the traditional group.
It is expected that an overwhelming majority will vote in favor of the project, as the shareholders are among the potential beneficiaries of the separation. You will receive shares in the new company, Daimler Truck, at a ratio of 2: 1. So whoever owns 20 Daimler shares so far will receive ten from Daimler Trucks. The securities are to be listed on the stock exchange in December. Experts assume that the stock market value of the two separate stock corporations will be higher than Daimler's current valuation. The elimination of the "conglomerate discount" alone could mean that Mercedes alone could be worth as much as Daimler today: around 82 billion euros.
Traditional company disappears
A lucrative business for Daimler shareholders. But there are also reflective tones from the industry. "One of the most successful, traditional and largest German companies disappears forever from the scene," comments car expert Willi Diez in a book that has not yet been published on the radical restructuring at Daimler. In fact, Daimler AG is to be renamed Mercedes-Benz Group AG on February 1, 2022. The name Daimler disappears from the passenger car sector and only remains in the truck business.
Nevertheless, the company continues to exist, albeit in two independent divisions. In addition, the star will continue to adorn cars from Mercedes-Benz as well as commercial vehicles. And the truck and bus division will not initially be released completely into independence. In a conversation with the "Frankfurter Allgemeine Sonntagszeitung", Daimler CEO Ola Källenius assured that the car manufacturer would "hold a protective hand over Daimler Trucks" through a planned minority stake. "If something happens in the market that is not in the interests of Daimler Trucks, then we are there," said Källenius. However, he did not want to determine how high the minority stake would be.
Chinese largest single shareholder
At present, 60 percent of Daimler shares are held by so-called institutional investors, i.e. fund companies, insurance companies and banks. 20 percent of the well over one billion shares belong to private investors. The largest single shareholders include the Kuwait sovereign wealth fund (6.8 percent) and the Chinese investor Li Shufu (Geely). This holds the largest share in Daimler (9.7 percent) through Tenaciou3 Prospect Investment (since 2018). In July 2019, the Chinese BAIC Group also acquired five percent of the voting rights in the car manufacturer.
It is not yet clear whether this distribution will change after the truck and bus divisions are separated. Daimler Truck boss Martin Daum does not see any completely new challenges for the business as a result of the planned IPO. The ones that have to be overcome have not changed: the ups and downs of the economy, especially now in connection with the corona crisis, the cost structure and the transformation of the industry itself.
Not a loss maker
As an independent company, Daimler Truck can optimally shape its future, according to Daum. "We are a strong company that can exist alone at any time," emphasized Daum. But there are areas where the costs are too high. You have to "slim down". This also includes downsizing.
At the same time, the company will gain speed and flexibility through the splitting up of the Daimler Group and will be able to better advance the development of the technologies that are most important for the truck sector. "The time of large bureaucratic conglomerates is over," said Daum. According to its own information, Daimler Truck is the world's largest manufacturer of trucks and buses with seven brands, more than 100,000 employees and a recent turnover of almost 45 billion euros. Around 300,000 people work for Daimler worldwide.
Mercedes makes itself vulnerable
For the industry expert Ferdinand Dudenhöffer, the split is only logical. "It fits in with the times," he said, referring to similar decisions made by other car companies, especially Volkswagen. The businesses of the various branches have little to do with each other; In addition, it was recognized that it was better to focus on the core business and not strive for the all-encompassing mobility group.
Market observers consider it unlikely that Daimler Trucks could arouse the desires of competitors or major activist investors; the entire industry is still too much in upheaval for that. Apparently the Daimler managers see it that way too. You have provided Daimler Truck with cash of 1.5 billion euros. According to Daum, the reserve should enable the company to strike quickly on good opportunities, i.e. to take over.
For some experts, concerns are triggered by the remaining car business. "The spin-off of the truck division makes Daimler more susceptible to activist attacks or takeover attempts," warns Ingo Speich from the Sparkasse fund company Deka Investment. The widespread skepticism about the future viability of Mercedes-Benz AG is based on the fact that it is a "small player in the global automotive market", says economics professor Diez. The truck business, on the other hand, is not doing so badly in the long term, as its fundamentals are predictable. "As long as business is going on, goods have to be transported," is the sober conclusion of the expert.