Toyota, Daimler near merger of truck units, Nikkei Asia reports

Toyota, Daimler near merger of truck units, Nikkei Asia reports

Toyota Motor's Hino Motors and Daimler Truck's Mitsubishi Fuso Truck and Bus are inching closer to finalizing a merger agreement, according to a recent report by Nikkei Asia. The two auto groups are aiming to establish a holding company for their truck units and list it on the Tokyo Stock Exchange's Prime market by April 2026.

The initial agreement was reached in May 2023, but the final deal has proved elusive. However, Nikkei reports that both companies are now focused on finalizing the merger. This move is part of a broader strategy to consolidate their positions in the global truck market.

The merger would create a significant player in the trucking industry, combining the strengths of both Toyota and Daimler. Hino Motors, a subsidiary of Toyota, is a leading manufacturer of commercial vehicles in Japan, while Mitsubishi Fuso Truck and Bus, a subsidiary of Daimler Truck, has a strong presence in the Asian market.

The listing on the Tokyo Stock Exchange's Prime market is seen as a strategic move to attract Japanese investors and enhance the company's visibility in the Japanese capital market. The exact details of the merger, including the valuation and the structure of the holding company, are yet to be finalized.

This development comes amid increasing competition in the global truck market, with companies looking to consolidate their positions to remain competitive. The merger is expected to provide synergies in areas such as research and development, procurement, and marketing.

Reference List:
[1] https://asia.nikkei.com/Business/Business-deals/Toyota-Daimler-near-merger-of-truck-units-eyeing-Tokyo-listing