German truckmaker Daimler is keen to expand its minority stake in Russia’s Kamaz gradually over the next four years and will not seek majority control in the short term, the head of its trucks division said.
The company, which owns 15 per cent of Kamaz alongside the European Bank for Reconstruction and Development (EBRD), has been given the green light by Russian regulators to increase its stake to at least a blocking level of 25 per cent.
“Don’t expect that we are interested in a majority stake in the short term. We will expand the 15 per cent stake... over the next 3-4 years, depending on the economic development and the valuation of Kamaz,” Daimler Trucks chief Andreas Renschler told reporters in Stuttgart.
Kamaz shares closed up 6.5 per cent to 48.8 roubles, adding to a 30 per cent rise in the year to date, valuing it at 34.5 billion roubles ($1.18 billion).
“Kamaz has an enormous need for new technology, so we need to sit down with them over time and consider ... what technology exactly fits. One of the biggest challenges for a manufacturer remains the supplier base, which is still underdeveloped in Russia,” Renschler added.