Daimler sells final EADS shares for €2.2bn, ends aerospace link
Daimler has sold its remaining 7.5% stake in EADS for €2.2 billion, closing a decade-long investment in the Airbus parent to focus on its core automotive business.
Daimler has completed its withdrawal from the aerospace sector by selling its last 7.5% holding in European Aeronautic Defence and Space Company (EADS), the parent of Airbus, for €2.2 billion. The move ends Daimler’s decade-long role as a founding shareholder and board presence at EADS, as the German group refocuses on its automotive operations after losing ground to BMW and Audi in the premium car market.
The sale involved 61.1 million shares at €37 each. EADS repurchased 16 million of these shares for €600 million, with the remainder placed on the market. Daimler’s exit follows a March 2013 agreement among EADS investors to overhaul the company’s ownership structure, making it easier for major shareholders such as Daimler and French publisher Lagardère to divest their stakes.
Refocusing on automotive growth
Daimler said the proceeds would be used to support global expansion and investment in its automotive divisions, as well as to strengthen its technological capabilities. The company’s management has been under pressure to improve competitiveness after years of trailing rivals in sales and profitability. Analysts suggested the cash could also be used to maintain dividend payments to shareholders, with Commerzbank’s Sascha Gommel describing the move as a way to secure stable returns for 2013.
The decision to sell the EADS holding comes as Daimler seeks to sharpen its focus on core business areas. The group has previously committed to major investment in new models and technologies, and is pursuing growth in emerging markets. The divestment also reduces Daimler’s exposure to a sector outside its main area of expertise, streamlining its portfolio at a time of intense competition in the premium car segment.
Shareholder structure at EADS
The restructuring of EADS’s shareholding in early 2013 was designed to reduce the influence of individual government and corporate shareholders, allowing for greater flexibility and a more market-driven ownership model. This paved the way for both Daimler and Lagardère to exit without destabilising the company’s governance. EADS, now known as Airbus Group, has since continued to diversify its shareholder base.
Daimler’s move follows a wider trend among industrial conglomerates to focus on core businesses and release capital from non-strategic assets. The sale frees up funds for Daimler to invest in its automotive future, as it seeks to regain ground in the global premium market.
