German-based commercial vehicle maker Daimler Truck and Japan's automotive giant Toyota have agreed to merge the truck businesses of their Japanese subsidiaries Mitsubishi Fuso and Hino as planned, according to a joint press release on Tuesday.
The groups intend to each hold 25% of the shares in a new listed holding company set to launch in April 2026, it said.
The holding company will be listed on the Tokyo stock exchange and is set to employ over 40,000 people, led by Karl Deppen, head of Asia at Daimler Truck, according to the statement.
The aim of the merger is to "cooperate in the areas of commercial vehicle development, procurement, and production."
"We are bringing together two strong partners to form an even stronger company and to successfully shape the decarbonization of transportation," Karin Radstrom, chief executive at Daimler Truck, said, calling the integration of the two businesses "truly historic."
"Today's final agreement is not the goal but the starting line," said Toyota chief executive Koji Sato. "Our four companies, aiming to achieve a sustainable mobility society, will continue to create the future of commercial vehicles together."
The companies had signed a letter of intent for the project two years ago. However, problems with the emissions certification of engines at Toyota's subsidiary Hino had delayed the plans.
Daimler Truck Asia sold 102,870 commercial vehicles last year, according to the company, with turnover reported at 4.9 billion euros ($5.6 billion).
A spokesperson noted that the Indian market and China are not included in the figures because both divisions have belonged to Mercedes-Benz Trucks since the beginning of the year.
