Daimler to be renamed Mercedes-Benz; split truck & car units

Daimler's truck unit could be worth about US$ 35 billion.

Daimler AG will be renamed as Mercedes-Benz by the end of 2021. The company will also split its luxury car business and its truck unit into separate entities. The move is said to be the biggest shake-up since the sale of Chrysler almost 14 years ago.

According to a media report, Daimler's truck unit could be worth about US$ 35 billion, but Deutsche Bank analysts estimate an even higher valuation.

The company plans to distribute a majority of Daimler Trucks to shareholders and the market seems to have responded positively to this news. Daimler shares rose by 8.9% to 64.56 euros on February 4, 2021.

The move is also said to have been perfectly timed as the transport and construction sectors have fully recovered in most markets.

Source: Bloomberg