TOKYO (dpa-AFX) - Daimler Truck Holding AG (DTRUY) and Toyota Motor Corp. announced on Tuesday that they have signed a non-binding memorandum of Understanding or MoU to combine the businesses of Mitsubishi Fuso Truck and Bus Corp. or MFTBC and Hino Motors, Ltd.
With this agreement, the businesses of Daimler's MFTBC and Toyota's Hino would be bundled under a holding company and the shares will be listed on the Tokyo Stock Exchange. The new company will have access to Daimler's heavy duty truck technology.
The parties foresee signing of definitive agreements in the first quarter of 2024 and closing of the transaction by end of 2024.
Details of the transaction, the corporate structure, and the shareholder ratio will be decided later in legally binding definitive agreements. The holding company will not be fully consolidated in Daimler Truck's financial statements.
'The risk associated with Hino's engine certification misconduct shall remain with Hino and will be taken into account when calculating the equity value of Hino and in form of certain mechanisms where the existing shareholders of MFTBC will be indemnified.', Daimler said in a statement.
Currently, shares of Daimler are trading at 28.51 euros up 0.39% or 0.11 euros on Xetra. Toyota shares closed at 1940 yen, up 0.60% or 11.50 yen on the Tokyo Stock exchange.
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