BONN (dpa-AFX) - Germany's Federal Ministry of Transport, Daimler(DDAIF.PK) and Deutsche Telekom (DTEGY.PK) have reached an agreement, to end the road toll arbitration proceedings. This settlement puts an end to a 14-year legal dispute regarding the delayed implementation of a system for the collection of road tolls for heavy trucks in Germany. The settlement amount totals around 3.2 billion euros. It takes previous payments to the German state into account and includes a one-time final payment of 550 million euros by Deutsche Telekom.
As the arbitral tribunal has not been able to reach a decision in 14 years and a decision is not expected in the foreseeable future, board members of Daimler and Deutsche Telekom and the transport minister met and in intensive negotiations were able to agree on terms for a settlement. The settlement now provides legal certainty for the companies and the German government, Deutsche Telekom said.
Toll Collect, operator of Germany's road toll system, has collected more than 50 billion euros for the German state over the past years. Mid-year, the company will begin collecting tolls on an additional 40,000 kilometers of federal roads. Daimler and Deutsche Telekom each hold 45 percent of Toll Collect, with the remaining ten percent held by French company Cofiroute.
Separately, Daimler said that a final settlement agreement is to include a final resolution of all litigation proceedings concerning Toll Collect. The agreement shall cover all claims that were raised in this context. It is to be expected that Daimler Group will face payment obligations amounting to about 0.6 billion euros in case of a settlement.
At the level of Daimler Group, a settlement could have a one-time negative EBIT effect in the magnitude of 0.6 billion euros that would impact the Daimler Group result in the current quarter and would be taken into consideration at Daimler Financial Services. Based on this negative one-time effect, Daimler now assumes that the result of Daimler Financial Services in 2018 will be in the magnitude of prior-year's level. The expectation for the Group EBIT remains unchanged slightly higher level than in the previous year.
Copyright RTT News/dpa-AFX