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. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/
Facts
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Associated With
Source Wikipedia, DaimlerChrysler
The American merger partner this 1998 deal combined with Daimler-Benz.
Source Wikipedia, DaimlerChrysler
The 1998 Daimler-Benz and Chrysler merger, structured and later unwound as a case study in cross-border valuation and cultural integration failure, is a standard finance-practice example of merger due diligence.
Source Wikipedia, DaimlerChrysler
Companies Involved
Source Wikipedia, Chrysler
Source Wikipedia, DaimlerChrysler
Sources
1. Wikipedia, DaimlerChrysler
WikipediaLead section
The company was renamed DaimlerChrysler upon the acquisition of the American automobile manufacturer, Chrysler Corporation in 1998, it was renamed to Daimler upon the divestment of Chrysler in 2007.
- Associated With: Daimler-Benz
- Associated With: Finance
- Companies Involved: Daimler-Benz
View the Source Wikipedia, Chrysler
WikipediaMerger 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.
- Companies Involved: Chrysler Corporation
View the Source 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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