Daimler AG said Friday it is considering buying a 42 percent stake in Russian truck maker OAO Kamaz in a bid to increase its presence in Europe's biggest truck manufacturer.
The Stuttgart-based company said it is looking at several options for Russia, including a new factory to locally assemble Daimler trucks, as well as the possibility of taking a stake in Kamaz that would "enable the two companies to combine their development, production, and sales expertise."
Daimler said in a statement it is in exclusive talks with Troika Dialog, an investment bank, to buy a 42 percent stake, and hopes to make a decision by the end of the year.
Troika said in June that it had invited Daimler, Volvo and Iveco to bid for the stake, which is worth approximately US$1.8 billion (1.15 billion).
Daimler said Russia is Europe's largest truck market, with new truck sales expected to grow by 20 percent over the next two years.
Russian Technologies, a state holding which includes aircraft, defense and car manufacturing holdings, has a 37.8 percent stake in Kamaz.
Daimler shares were up by more than 1 percent to 38.94 (US$61.05) in Frankfurt.
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