Daimler AG and Russia’s largest investment bank, Troika Dialog, have signed a memorandum of understanding to increase Daimler’s stake in Russia’s largest truck manufacturer, Kamskiy avtomobilny zavod, by the acquisition of 5% of the Kamaz shares held by Troika Dialog.
The price of the transaction was not disclosed. Kamaz has about 50,000 employees and $1 billion in annual revenue.
The announcement came on the same day as Fiat entered an agreement with Russian automaker Sollers to share technology and build as many as 500,000, small cars and SUVs in eastern Russia.
Under this heavy duty truck plan, the European Bank for Reconstruction and Development (EBRD) would also become a Kamaz shareholder.
If all the EU regulatory approvals are obtained, the Daimler and EBRD acquisitions would be made in parallel. No such regulatory impediment exists in Russia, as the presence of Vladimir Putin, Prime Minister of the Russian Federation, at the signing ceremony confirms.
Daimler AG will initially increase its holding in Kamaz by 1% to 11%. The remaining 4% of the deal would be bought by the EBRD. The EBRD would also get a seat on the Kamaz board of directors.
Daimler already has a seat on the Kamaz board, the result of a strategic partnership with Kamaz, Russian Technologies and Troika Dialog signed in December 2008.
Daimler acquired a 10% stake in Kamaz just as the global Great Recession took hold and the Russian auto market collapsed to half its former size.
“The planned increase of our stakes in Kamaz is strengthening the strategic partnership of Daimler Trucks at KAMAZ,” said Andreas Renschler, Daimler Board of Management member responsible for Daimler Trucks and Daimler Buses. (more…)