Daimler Truck Holding and Toyota Motor Corp mentioned on Tuesday that they had entered a non-binding settlement to mix the companies of their truck items in Japan.

Below the memorandum of understanding (MOU), the companies of Daimler-owned Mitsubishi Fuso Truck and Bus Corp and Toyota subsidiary Hino Motors Ltd can be mixed below a holding firm, they mentioned in a press release.

The shares of the brand new firm are anticipated to be listed on the Prime Market of the Tokyo Inventory Alternate.

Daimler Truck and Toyota will spend money on the corporate equally and cooperate on the event of hydrogen and different applied sciences in areas akin to connectivity and autonomous driving, the assertion mentioned.

The businesses anticipate to signal a definitive settlement within the first quarter of 2024 and shut the transaction by the top of subsequent yr, they mentioned.

Final yr, a committee tasked with investigating an emissions scandal at Hino, which turned a Toyota subsidiary in 2001, discovered that the truck and bus maker had falsified emissions information going again to 2003.

The heads of the 4 firms will maintain a joint information convention in Tokyo at 4:30 p.m. (0730 GMT).