Corporate Events
DaimlerChrysler Merger
Also Known As Merger of equals
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In 1998, the German automaker Daimler-Benz and the American automaker Chrysler Corporation combined in a stock swap billed as a merger of equals, creating DaimlerChrysler AG. Valued at about thirty-eight billion dollars, it was at the time the largest cross-border corporate deal ever completed. The union proved culturally and financially troubled, and Daimler ultimately sold the Chrysler unit to Cerberus Capital Management in 2007.
Facts
Cross-Tradition Connections
Associated With
The American merger partner this 1998 deal combined with Daimler-Benz.
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Sources
1. Wikipedia, DaimlerChrysler
WikipediaLead sectionQuote, Lead section
In a so-called 'merger of equals,' or 'marriage made in heaven,' according to its then CEO and architect Jurgen E. Schrempp, Daimler-Benz, and United States-based automobile manufacturer Chrysler Corporation, the smallest of the main three American automakers, merged in 1998 in an exchange of shares and formed DaimlerChrysler AG.
1. Wikipedia, DaimlerChrysler
Wikipedia, Chrysler
WikipediaMerger and demerger sectionQuote, Merger and demerger section
On May 14, 2007, DaimlerChrysler announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management, L.P.
Dissenting Readings (1 dissenting reading)
Common Name
Investors filed lawsuits disputing the "merger of equals" characterization, arguing the 1998 transaction was in substance a Daimler-Benz takeover of Chrysler rather than a merger between equal partners. As late as 2002 the combined company was still reported as running two independent product lines, and Daimler ultimately divested Chrysler to Cerberus Capital Management in 2007, ending the union less than a decade after it was announced as permanent.
A dissenting reading, from DaimlerChrysler shareholder plaintiffs (1998-2003 merger-of-equals litigation)Wikipedia, DaimlerChrysler, Wikipedia
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