Chrysler sold to Cerberus for $7.4 billion

DaimlerChrysler announced today that it has sold a 80.1 percent stake in Chrysler Group to Cerberus Capital Management of New York, a private equity firm. Cerberus Capital Management is paying $7.4 billion for Chrysler, which unbinds the 1998 DaimlerChrysler merger.

DaimlerChrysler will now change its name to Daimler AG while Chrysler Group will change its name to Chrysler Holding. Chrysler has now become the first privately held company out of the big three.

Cerberus will invest $5 billion in Chrysler and $1.05 billion in Chrysler’s financial arm. DaimlerChrysler will recieve the remaining $1.35 billion. DaimlerChrysler has also agreed to lend Chrysler Holding $400 million, as a part of the restructuring program, and has agreed to absorb $1.6 billion in costs.

Source: The New York Times

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