Ola Kaellenius, chairman of Daimler AG, at a Daimler production plant in Sindelfingen near Stuttgart, Germany, on Sept. 2, 2020.
Photo: ralph orlowski/Reuters
BERLIN—Daimler AG said it will split its Mercedes-Benz car division and its Daimler Trucks division into two separate companies, aiming to spin off the trucks business to shareholders—a move that highlights how conventional auto makers are under pressure to boost their stock-market value.
Daimler said Wednesday it would spin off a “significant majority” of shares in Daimler Trucks to existing shareholders by the end of the year and would eventually rename the car-making business Mercedes-Benz.
Investors have long lobbied Daimler to split, saying two separate entities would unlock more value in each business compared to their value as a conglomerate.
Daimler shares jumped on the announcement, rising nearly 9% as shareholders applauded the news.
(More to Come)
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