LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » World News

Daimler considers legal split in strategic overhaul

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Wed, Jul 26, 2017
07:39 pm
Reuters

Daimler may split parts of its business into separate legal entities in an overhaul, its Chief Executive Dieter Zetsche said, although the car and truck maker ruled out major divestments for now.

News of Daimler`s strategic review spurred speculation on Wednesday about a break-up of the maker of Mercedes-Benz cars, trucks, buses and vans as it seeks to fund multi-billion euro autonomous and electric car investments.

"We recommend taking this communication very seriously," analysts at Evercore ISI said in a note.

Separating Daimler`s divisions could unlock value, with trucks and buses on their own worth 31 billion euros ($36 billion), analysts at Evercore ISI said in a note. The German company`s total market capitalisation is around 65.25 billion euros, according to Thomson Reuters data.

Chief Financial Officer Bodo Uebber said Daimler does not intend to divest business divisions, but left open the question about a partial listing of some businesses.

"We have not decided to set up new legal structures within our group. We have decided to analyse this possibility. We had a small group in our company which was weighing this idea," Zetsche said in a call on second-quarter results.

Internal deliberations within Daimler had now reached a stage where markets needed to be informed, he added.

News of the strategy review comes as the auto industry faces a barrage of criticism over diesel pollution and allegations about anti-competitive behaviour.

"The automotive industry is currently making headlines, and not good ones," Zetsche conceded.

German magazine Der Spiegel reported on Friday that German carmakers Daimler, BMW, VW, Porsche and Audi held meetings to discuss suppliers, prices and standards to the disadvantage of foreign carmakers.

The European Commission said it was investigating the matter, although Daimler pointed out it was not subject to a formal probe. Companies found guilty of breaching EU cartel rules face fines of as much as 10 percent of their global turnover unless they gain whistle-blower immunity.

In a call with journalists Zetsche declined to comment on whether German carmakers had colluded.

"We are well advised not to participate in speculation," Zetsche said, refusing to comment further.

Asked whether such allegations could result in consequences for cooperation deals, such as a procurement agreement with BMW, Zetsche said: "Since we obviously operated within the law, none."

Daimler`s and Volkswagen`s supervisory boards met on Wednesday to discuss the allegations.LUXURY STARS

Second-quarter results showed Daimler`s star performer remained its luxury cars division which helped push up quarterly operating profit by 15 percent, slightly below consensus.

Mercedes-Benz sold 595,200 cars thanks to a 28 percent rise in Chinese demand. Margins improved to 10.2 percent from 6.4 percent in the year-earlier period, mainly due to sales of a new E-Class limousine.

Daimler said it expects strong sales in China in the second half, after its overall earnings before interest and tax (EBIT) rose to 3.74 billion euros in the second quarter, below the average forecast of 3.81 billion euros in a Reuters poll.

The Stuttgart-based company also lifted the outlook for its trucks and vans divisions, saying it now expected EBIT to reach prior-year levels for both.($1 = 0.8593 euros)

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

Budget 2021 Expectations: Mobile industry raises demand for GST rate cut in Union Budget 2021-2022

Budget 2021: Unprecedented! 1st time ever since 1947, this is going to happen in Union Budget 2021-2022

Employees Provident Fund (EPF) wage ceiling: PF deduction on Rs 21,000 instead of Rs 15,000 likely soon

Hrithik Roshan on how you look, feel being key instigators

Recovery of excess pension made to pensioners: Big decision! Important notification by RBI

IPO alert! Stove Kraft mobilises over Rs 185 crore from anchor investors

Rs 5, 10 and 100 news: Will old notes be valid after March 2021? Here is truth from Modi government

7 planets orbiting TRAPPIST-1 may be made of similar stuff

Anand Mahindra to gift THAR-SUV to Natarajan, Mohammed Siraj, Thakur, Washington Sundar, Shubman Gill and Navdeep Saini

Nearly Rs 10 lakh fine on wedding organiser for breaching Covid-19 lockdown; many guests left as police arrived

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved