Daimler AG said Wednesday it will acquire a 22.3 percent stake in Tognum AG, a maker of diesel engines that it sold off in 2005.
The Stuttgart-based auto and truck maker said it planned to pay approximately 585 million (US$909.09 million) for the stake to Swedish private equity firm EQT, making Daimler the company's biggest shareholder. Its supervisory board already has signed off on the plan.
"Thanks to the optimized shareholder structure and the initial public offering in 2007, Tognum has become a globally leading producer of off-highway engines with above-average operating margins," Daimler said in a statement.
The two companies have worked in tandem since the original sale, with Daimler-produced diesel engines supplied to Tognum. The engines are used in agricultural machinery and in vehicles such as cranes, snowplows and marine products.
Shares of Daimler were down more than half a percent to 49.92 (US$77.58), while Tognum shares jumped nearly 4 percent to 18.55 (US$28.83).
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