Daimler is acquiring a 22.3% stake in heavy diesel engine manufacturer Tognum for around EUR585m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Tognum was formerly a DaimlerChrysler division called MTU Friedrichshafen. It was sold off in 2005 to Swedish investment group EQT when the vehicle manufacturer was preoccupied with problems at Chrysler and unable to give the diesel engine business the required attention.
Daimler becomes the largest shareholder in Tognum. Tognum’s chief executive Volker Heuer told Reuters that Daimler is not interested in increasing its stake to give it a blocking minority (25% plus one share), but this is not the view of the German press, which says that Daimler will seek a blocking minority in the short to medium term.
Daimler is hoping to benefit from above average margins for the sector earned by Tognum. Tognum supplied more than 20,000 engines to Daimler last year, generating around EUR 460m in sales to the company. It also supplies drive shafts to Daimler.
EQT listed Tognum in July 2007. It is quoted on the M-Dax exchange.
