Deutz Announces Engine Cooperation Agreement with Daimler Truck AG

German engine-maker Deutz announced a comprehensive agreement with Daimler Truck AG, including both medium-duty engines (the Daimler Truck MDEG series) and heavy-duty engines (Daimler Truck HDEP series). The MDEG Series engines can be used in construction equipment, and the HDEP are applicable to power heavy agricultural machinery. For the acquisition of the on-highway IP for the medium-duty engines Daimler Truck received about 5.285 million new “no-par-value” bearer shares. As a result, Daimler Truck now holds 4.19 percent of the issued capital of Deutz AG. The new shares are expected to be included in trading in the short term.

“The cooperation with Daimler Truck significantly improves our starting position in a consolidating market as we will gain access to technologically advanced engines and will be able to attract new customer groups at the same time,” said Deutz CEO Dr. Sebastian Schulte. “Incidentally, we are delighted to welcome Daimler Truck as a new shareholder, which reflects our strong position in the impending consolidation of the engine market.”