Daimler Contemplates Taking Control Over Largest Russian Truck Maker

• Kamaz would thereby stay out of State control

Daimler AG, the world"s largest truck maker, could buy an additional 15 per cent in Russian truck maker Kamaz from the investment firm Troika Dialog, according to the Russian newspaper Vedomosti, which commented that Daimler would therefore take control over the currently unprofitable Russian company.

The Vedomosti quoted sources from inside Kamaz as saying that Daimer and Troika Dialog were currently discussing the price of the share package. Troika Dialog currently holds 44 per cent in Kamaz, which has reportedly sparked the interest of another minority shareholder, the State-run Rosthechnologies

Analysts commented that the increase in Daimler"s stake in Kamaz would lead to an improvement in the performance of the Russian company and keep it out of State control.

Vedomosti did not mention a possible price for the 15 per cent stake in Kamaz, but other Russian media had previously said that Daimler could spend between 300 and 320 million USD on that package. Considering the current market price, the 15 per cent in Kamaz is worth 260 million USD.

Daimler in late 2008 paid 250 million USD for 10 per cent in Kamaz.

• Daimler, Kamaz to set up two joint ventures

Daimler and Kamaz have decided to set up two joint ventures in order to increase production in Russia, the largest market for trucks in Europe.

One of them will be named Fuso Kamaz Trucks Rus and will import light truck kits from Japan, pending assembly in Russia. The company will become operational in the first quarter of 2010. The second joint venture will be named Mercedes-Benz Trucks Vostok and will start producing heavy vehicles in the second quarter of 2010.

Daimler and Kamaz will each contribute 4.1 million EUR (6.1 million USD) to the capital of Fuso Kamaz Trucks Rus and 5.9 million EUR to the capital of Mercedes-Benz Trucks Vostok. The two companies will have equal stakes in the two joint ventures.