TOKYO Daimler Truck Holding AG and Toyota Motor Corp said on Tuesday they had entered a non-binding agreement to combine the businesses of their truck units in Japan.

Under the memorandum of understanding (MOU), the businesses of Daimler-owned Mitsubishi Fuso Truck and Bus Corp and Toyota subsidiary Hino Motors Ltd would be combined under a holding company, they said in a statement.

The shares of the new company are expected to be listed on the Prime Market of the Tokyo Stock Exchange.

The companies expect to sign a definitive agreement in the first quarter of 2024 and close the transaction by the end of next year, they said.

The heads of the four companies will hold a joint press conference in Tokyo at 4:30 p.m. (0730 GMT).

(Reporting by Satoshi Sugiyama; Editing by Chang-Ran Kim)