Daimler To Rename Itself Mercedes-Benz By End Of 2021

Daimler’s share price jumped almost nine percent following the announcement.

Ola Daimler CEO - Formula1news.co.uk

Daimler, the parent company of the Mercedes auto-maker and the Mercedes F1 Team, has announced that it will be renamed Mercedes-Benz by the end of 2021 and will list its truck arm under a separate entity.

As news of this planned restructuring broke, Daimler’s share price jumped almost nine percent, approaching its two-year high.

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Commenting on the move, Daimler CEO Ola Kallenius said Mercedes-Benz cars and Daimler’s truck arm “are different businesses with specific customer groups, technology paths and capital needs.”

Continuing, he said: “We believe they will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure.”

Daimler’s truck division could be worth circa $35 billion if valued at multiples similar to Volvo, according to Deutsche Bank.

Meanwhile, US brokerage firm Sanford C. Bernstein estimates its value at approximately $42 billion.

Arndt Ellinghorst, managing director and senior vice president of Sanford C. Bernstein, described the move as “extremely positive for all shareholders” and said “we’re convinced that this is also in the best interest of all employees at Daimler.

“It’s also a strong positive statement for the German corporate landscape and financial market,” Ellinghorst added in his email to investors.

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