Mercedes to sell part of €12 Billion Daimler Truck stake
Daimler Truck’s stock fell as much as 2.7% in Frankfurt today
Mercedes-Benz Group AG plans to sell some of its stake in Daimler Truck Holding AG to raise funds as it grapples with weakening sales and margins.
The luxury-car maker will offload part of its roughly 35% holding in the truck and bus manufacturer this year, Chief Financial Officer Harald Wilhelm said Thursday. The entire stake is worth around €12 billion ($14.2 billion).
Proceeds from the transaction will be returned to shareholders, the CFO said during a call with investors, adding that it will give details on the size of the divestment in May. Daimler Truck’s stock fell as much as 2.7% in Frankfurt.
Even with extra cash from selling Daimler Truck shares, Mercedes is bracing for a difficult year. The company earlier Thursday warned that margins will be at best flat amid trade tensions and intense competition in China. The automaker is cutting expenses to become leaner.
Mercedes retained its stake in Daimler Truck, the world’s biggest maker of commercial vehicles, when it spun off the business in 2021 to focus on vans and passenger cars. A partial sale would further unwind ties between the two companies following that split.
— By William Wilkes (Bloomberg)
