Cerberus Capital Management – the now parent company of Chrysler LLC – has approached Chrysler’s previous owner, Daimler, about acquiring the rest of the German company’s stake in the Michigan automaker. When Cerberus purchased Chrysler, it received an 80.1 percent stake in the company, with Daimler holding onto the remaining 19.9 percent.
The deal currently in discussions would see Daimler selling its 19.9 percent to Cerberus, giving Cerberus complete control of the company. However, even if the deal goes through, Chrysler and Daimler would still likely collaborate on some ventures, such as technology and platform sharing, according to Automotive News.
The reason for the talks remains largely unknown. Industry analysts have a few speculations, including there was an unpublicized provision in the original contract between Daimler and Cerberus allowing for the sale of the remaining stake or that Cerberus is preparing to sell Chrysler . However, Daimler previously reported its stake in Chrysler cost the company $515 million in the first quarter alone, so the German firm could be looking to simply cut its losses.
Whatever the reason, it appears as though both sides are in the support of the deal, so look for the rest of Chrysler to be handed over to Cerberus in the near future.
