Toyota, Daimler truck units to combine operations under holding company

Toyota Motor Corp. President and Chief Executive Koji Sato shakes hands with Daimler Truck Chief Executive Martin Daum during their joint news conference in Tokyo, Japan, May 30, 2023. REUTERS/Kim Kyung-Hoon

TOKYO  – Daimler Truck Holding AG and Toyota Motor Corp said on Tuesday they had entered a non-binding agreement to combine the businesses of their truck units in Japan.

Under the memorandum of understanding (MOU), the businesses of Daimler-owned Mitsubishi Fuso Truck and Bus Corp and Toyota subsidiary Hino Motors Ltd would be combined under a holding company, they said in a statement.

The shares of the new company are expected to be listed on the Prime Market of the Tokyo Stock Exchange.

The companies expect to sign a definitive agreement in the first quarter of 2024 and close the transaction by the end of next year, they said.

The heads of the four companies will hold a joint press conference in Tokyo at 4:30 p.m. (0730 GMT).