Daimler reported unexpectedly strong profits, underlining a rebound by traditional carmakers despite the pandemic.
Lacking a strong domestic battery industry, Britain may be left behind by the shift to electric cars.
Shareholders of the two companies voted to join forces in an effort to cope with a major technology shift and plummeting sales.
As Tesla completes a factory in Berlin, Mercedes-Benz and Audi are introducing electric cars in bids to defend their dominance of the luxury market.