Daimler agrees to let go of 19.9 percent stake in Chrysler, forgives loans

Daimler AG announced yesterday that it has reached an agreement with Chrysler to unload its remaining 19.9 percent stake in the company. Daimler sold an 80.1 percent stake in the U.S. automaker to private equity firm Cerberus Capital Management in 2007, ending a shaky decade-long relationship.

“Daimler’s remaining 19.9 percent shareholding in Chrysler will be redeemed, and Daimler will forgive repayment of the loans extended to Chrysler, which were already written off in the 2008 financial statement,” Daimler said in a statement.

Daimler will write off $700 million as a result of the deal.

– By: Omar Rana

Source: CNNMoney