Mercedes-Benz AG — M&A Activity 2002

Sep 20, 2002

News Details

Ad-hoc | 20 September 2002 08:29

DaimlerChrysler AG english

DaimlerChrysler Strengthens its Commercial Vehicles Business Alliances with Mits Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– DaimlerChrysler Strengthens its Commercial Vehicles Business Alliances with Mitsubishi Motors Corporation and Hyundai Motor Company Stuttgart/Auburn Hills, the Supervisory Board of DaimlerChrysler AG, meeting in Auburn Hills, agreed that the company’s alliance with Mitsubishi Motors Corporation (MMC) as well as its partnership with Hyundai Motor Company (HMC) in the area of commercial vehicles should be further strengthened. DaimlerChrysler will purchase 43 % of the spun-off commercial vehicle business of Mitsubishi Motors (purchase price approximately 760 million Euros). At the same time, the Board of Management is authorised to exercise its option, as contractually agreed with Hyundai Motor, to purchase a 50 % share of the spun-off commercial vehicle business of HMC by the end of the year (purchase price around 400 million Euros). The MMC Board of Directors approved the DaimlerChrysler share increase in Fuso at its meeting on September 20th, 2002. The agreement with Mitsubishi Motors assumes MMC’s demerger of its current commercial vehicle division by early 2003 to form a separate company, which will be called Mitsubishi Fuso Truck and Bus Corporation (MFTBC). DaimlerChrysler will purchase 43 % of the shares in MFTBC for 760 million Euros. The Mitsubishi Group companies (primarily Mitsubishi Corporation, Mitsubishi Heavy Industries, Bank of Tokyo Mitsubishi etc.) will acquire a total of 15 % of the shares for around 265 million Euros. The remaining 42 % will be held by MMC. The Supervisory Board has also authorised the DaimlerChrysler Board of Management to exercise the option contractually agreed in June 2001 for DaimlerChrysler to take a 50 % share in the commercial vehicle business of HMC. DaimlerChrysler will purchase this share for around 400 million Euros. The new venture incorporated in the previously established Daimler Hyundai Truck Corporation (DHTC) , which includes the engine joint venture – will also produce trucks, buses and components. DHTC will be headed up by a board of management comprising eight members. DaimlerChrysler will be responsible for appointing four members , of these the Chief Operating Officer (COO) and the Chief Financial Officer (CFO). end of ad-hoc-announcement (c)DGAP 20.09.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: This document contains forward-looking statements that reflect the current views of DaimlerChrysler management with respect to future events. The words anticipate, believe, estimate, expect, intend, may, plan, project and should and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: changes in general economic and business conditions, especially an economic downturn in Europe or North America; changes in currency exchange rates and interest rates; introduction of competing products; lack of acceptance of new products or services, including increased competitive pressures on the general level of sales incentives and pricing flexibility; inability to implement the turnaround plans for the Chrysler Group and Freightliner promptly and successfully, especially an inability to meet revenue enhancement, efficiency and cost reduction initiatives; the ability of Mitsubishi Motors to implement its restructuring plan successfully; and decline in resale prices of used vehicles. If any of these or other risks and uncertainties occur (some of which are described under the heading Risk Factors in DaimlerChrysler’s most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission), or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. DaimlerChrysler does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Both transactions are subject to regulatory approvals and the negotiation of final terms and conditions. ——————————————————————————– WKN: 710 000; ISIN: DE0007100000; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München und Stuttgart; NYSE; Paris; Swiss Exchange; Tokio; Toronto 200829 Sep 02