Toyota and Daimler Just Shocked the Trucking World with a $6.4B Power Play
Toyota (NYSE:TM) and Daimler Truck just sealed a $6.4 billion merger between their Japanese truck divisionsHino Motors and Mitsubishi Fusosetting the stage for a heavyweight in commercial vehicles that could finally give China's EV truck momentum a run for its money. The two companies have been circling this deal since May 2023, but an engine data scandal at Hino and a record $1.2 billion U.S. settlement delayed the closing. Now it's official. The new entity, which will sell over 200,000 units a year, is expected to go live by April 2026, with a planned listing in Japan. Toyota and Daimler Truck will each hold 25% of the holding company, but Toyota's voting rights will be capped at 19.9%.
Warning! GuruFocus has detected 3 Warning Sign with TM.
This merger could be a defensive playand possibly a hydrogen-powered counterattack. With battery-electric vehicles already dominating cars, Toyota sees trucking as the best shot to scale its hydrogen fuel cell bets. That's key, especially as CATL's Robin Zeng recently projected that half of all new trucks sold in China could be electric by 2028. The combined group, led by Mitsubishi Fuso CEO Karl Deppen, gives Japan a consolidated commercial vehicle force to compete on tech and scale, while leaving Isuzu to lead the other half of the domestic market. Jefferies puts the combined group's equity value at 5.6 billion, pegging it at 11x EBIT.
There's more. As part of the deal, Toyota is buying Hino's Hamura plant for 150 billion ($1 billion)a site where it already builds the Hilux and Land Cruiser 250. This adds to the company's broader restructuring, including a planned $33 billion take-private of Toyota Industries. But the road ahead won't be smooth. Both Toyota and Daimler Truck have lost ground in market share, and U.S. tariffs haven't made life easier. Still, in a market shifting fast toward electrification and autonomy, the merger could help them stay in the fightespecially if hydrogen ends up playing a bigger role than expected.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
12 minutes ago
- New York Times
U.S. Steel and Nippon Steel Say Their ‘Partnership' Is Sealed
U.S. Steel and Nippon Steel announced on Friday that they had entered into an agreement with the U.S. government to seal the terms of a 'partnership' between the companies, more than a year after the Japanese steel maker first tried to buy its U.S. competitor. Former President Joseph R. Biden Jr., under pressure from the United Steelworkers union, blocked the deal on the basis that it was a threat to national security. President Trump, who also initially opposed the deal, reversed himself and decided to look for a way to revive it. The companies referred to the deal as a partnership, echoing language that Mr. Trump used in describing the transaction he blessed three weeks ago. But U.S. Steel has not indicated to shareholders that it has altered the $14.9 billion sale to Nippon that they approved in April last year. 'We thank President Trump and his administration for their bold leadership and strong support for our historic partnership,' the companies said in a statement. 'This partnership will bring a massive investment that will support our communities and families for generations to come.' The companies said they had entered into agreement with the U.S. government to alleviate any security concerns posed by the deal, known as a national security agreement, which calls for roughly $11 billion in new investments by 2028. The deal will also give the U.S. government a 'golden share' in the company, a rarely used practice through which the government takes a stake in company. In the United States, the government has typically taken a stake only in companies that are ailing or in particular need of government attention, like General Motors during the 2008 financial crisis. This is a developing story. Check back for updates.
Yahoo
41 minutes ago
- Yahoo
Why Oklo Stock Slumped Today
The company priced its upcoming secondary share issue. It's selling its common stock at $60 apiece. 10 stocks we like better than Oklo › One of the hotter energy stocks of recent times cooled down on Friday. This is next-generation nuclear company Oklo (NYSE: OKLO), which provided details of a capital-raising effort it originally announced late Wednesday afternoon. Investors weren't all that happy with this, and on Friday, they traded the stock down to leave it with a more than 1% loss in value. After market hours Thursday, Oklo provided more information about the secondary share issue it disclosed the previous day. The issue has been priced at $60 per share, more than $4 below Thursday's closing price. The company is to float nearly 6.7 million shares of its class A common stock, so the issue is set to raise gross proceeds of slightly over $400 million. The issue's underwriting syndicate is led by Goldman Sachs and Bank of America Securities and includes Citigroup, JPMorgan Chase's J.P. Morgan, and UBS Investment Bank. The underwriters have been granted a 30-day option to collectively purchase up to 1 million additional shares at that $60 per share price. The offering should close this coming Monday, June 16. Despite recent successes, such as its receipt of a notice of intent to award (NOITA) a project on an Alaska base for the Air Force, Oklo is still at a relatively early stage as a company. As such, it continues to be hungry for capital to sustain its operations. The downside of this, of course, is the dilutive nature of share issues. This one isn't particularly so, as Oklo has more than 139 million shares currently outstanding. Still, it's surely spooking investors who worry that there are more, and larger, share issues to come. Before you buy stock in Oklo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oklo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, Goldman Sachs Group, and JPMorgan Chase. The Motley Fool has a disclosure policy. Why Oklo Stock Slumped Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Why American Express Stock Flopped on Friday
A report in a top financial newspaper highlighted a large potential threat to the business of payment card companies. A proposed federal law could make the threat more acute. 10 stocks we like better than American Express › Sturdy payment card mainstay American Express's (NYSE: AXP) stock was looking a bit rickety on the last trading day of the week. The company's shares lost more than 3% of their value on Friday following a report in a top financial newspaper regarding the potential defection of an important customer base. By comparison, the S&P 500 index only fell by slightly over 1% that day. That morning, The Wall Street Journal published an article stating that some of the largest American retailers are considering how to use stablecoins in their businesses. Stablecoins are cryptocurrencies that are pegged to a fiat currency, such as the dollar, and typically buttressed by cash or relatively liquid securities. Citing unidentified "people familiar with the matter," the newspaper wrote that influential companies in the sector, such as Walmart and Amazon, are even considering whether to issue their own stablecoins. The Journal also flagged sprawling online travel agency Expedia Group as a business exploring such an option. The attraction of payment instruments like stablecoins is that, if implemented well, they could save retailers vast amounts of money in fees. A key source of revenue for card payment companies is the small charges they impose on merchants accepting their cards, hence the negative AmEx investor reaction to the news. How far such efforts go will depend on the fate of the Genius Act, a proposed law making its way through Congress that would erect a regulatory framework for stablecoins. If it successfully makes it through the legislative process and becomes law in some useful form, stablecoins could indeed become a money-saving instrument convenient for U.S. retailers and their customers. Before you buy stock in American Express, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and American Express wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. American Express is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy. Why American Express Stock Flopped on Friday was originally published by The Motley Fool
