Off-road engine manufacturer Deutz and Daimler Truck say that their comprehensive cooperation agreement, first announced at the end of January, has now been finalised.
The transactions for the agreement include both medium-duty engines (Daimler Truck MDEG series), which are suitable for use in applications such as construction equipment, and heavy-duty engines (Daimler Truck HDEP series), which can be used to in areas including power heavy agricultural machinery. After full approval was granted by the authorities, the underlying transactions have now been closed.
For the acquisition of the on-highway IP for the medium-duty engines, Daimler Truck received approx. 5.285 million new no-par-value bearer shares by way of a capital increase in kind. As a result, Daimler Truck holds 4.19% of the issued capital of Deutz. The new Deutz shares, which are entitled to participate in dividends for the financial year 2022, are expected to be included in trading in the short term.
“The cooperation with Daimler Truck significantly improves our starting position in a consolidating market as we will gain access to technologically advanced engines and will be able to attract new customer groups at the same time,” says Deutz CEO Sebastian Schulte. “Incidentally, we are delighted to welcome Daimler Truck as a new shareholder, which reflects our strong position in the impending consolidation of the engine market.”
