In back, Vladimir Putin, Prime Minister of the Russian Federation. Seated left to right, Serguei Skvortsov, Managing Director, Troika Dialog, Andreas Renschler, Daimler Board of Management, Serguei Chemezov, General Director of Rostechnologii State Corporation and Chairman of the Board of Directors of OJSC Kamaz, Serguei Kogogin, General Director Kamaz.
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.
The Germans, once again, head east.
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.
“This is not only a strategically important step for Daimler Trucks, especially under the currently difficult economic conditions — it also sends a clear signal. The strategic partnership with Kamaz and the projects that have already been completed have set a further milestone toward opening up the Russian market with its promising growth opportunities. It will allow us to further expand Daimler Trucks’ global presence,” Renschler concluded.
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.”
Last November, Daimler Trucks and Kamaz signed agreements for the establishment of two joint ventures.
Daimler AG and Kamaz each will own 50% of the first joint venture, Fuso Kamaz Trucks, which is just about tostart importing semi-knocked-down (SKD) assembly kits of Fuso trucks from Japan. The trucks will be manufactured in Naberezhnye Chelny, where Kamaz has its truck plant; the new company’s sales headquarter is in Kazan.
Daimler and Kamaz each also will own 50% of a second joint venture, Mercedes-Benz Trucks Vostok, which will initially build the heavy-duty Mercedes-Benz Actros and Axor models in SKD assembly operation, which also will be located in Naberezhnye Chelny.
The sales headquarters for Mercedes-Benz Trucks and Buses as well as Setra Coaches in Russia will remain in Moscow. Truck production is scheduled to commence in the second quarter of 2010, while the sales operations began last month via the new company Mercedes-Benz Trucks Vostok.