Daimler, Troika Sign MoU To Increase Stake In KAMAZ

Daimler has signed a memorandum of understanding (MoU) with Troika Dialog, a Russian investment bank. This agreement is to improve Daimler’s role in KAMAZ, a Russian truck manufacturer, through acquisition of 5% of KAMAZ shares held by Troika Dialog.

Under this plan, Daimler and European Bank for Reconstruction and Development (EBRD) are in negotiations to acquire this stake in KAMAZ owned by Troika Dialog. The acquisitions will be made in parallel and closely coordinated. Daimler will initially increase its holding in KAMAZ by 1% to 11%. The remaining 4% of deal would be bought by EBRD. As a result of this transaction, EBRD would obtain representation on KAMAZ board of directors. The parties to the contract have agreed not to disclose price at which 5% stake will be purchased from Troika Dialog.

Daimler Trucks began a strategic partnership with KAMAZ, Russian Technologies and Troika Dialog in December 2008, when it acquired a 10% stake in KAMAZ.

Daimler and KAMAZ each will own 50% of first joint venture, Fuso KAMAZ Trucks Rus, which is beginning to import semi-knocked-down (SKD) assembly kits of Fuso trucks from Japan in Q1, 2010. The trucks will be manufactured in Naberezhnye Chelny, where KAMAZ has its truck plant, it’s new sales headquarter is in Kazan.

In addition, Daimler and KAMAZ each will own 50% of second joint venture, Mercedes-Benz Trucks Vostok, which will initially build heavy-duty Mercedes-Benz Actros and Axor trucks in SKD assembly also located in Naberezhnye Chelny. The sales headquarters for Mercedes-Benz Trucks and Buses and Setra Coaches in Russia will remain in Moscow and truck production is scheduled to commence in Q2, 2010, while sales operations already began in January 2010 via new company Mercedes-Benz Trucks Vostok.

Sergei Kogogin, general director of KAMAZ, said: “The increase of Daimler Trucks in the strategic partnership with KAMAZ demonstrates that our co-operation is on the right course and is making KAMAZ to an internationally competitive company.”