Daimler-Benz acquires Chrysler
Year: 1998
Acquisition Price: $37 billion
Industry: Automobiles
In 1998, the German automobile conglomerate Daimler-Benz merged with Chrysler for $37 billion. At the time, this was the biggest acquisition by a foreign buyer of any U.S. company in history.
The resulting formation of DaimlerChrylser AG was marred by a class-action lawsuit filed by investors who felt that the sale amounted to a hostile takeover of Chrysler by Daimler-Benz. Poor performance by Chrysler after the merger amounted to the company reporting losses of $1.5 billion in 2006, and by 2007, Chrysler was sold to American private equity firm Cerberus Capital Management for $7.4 billion. - Read more at: http://scl.io/UFCixJIe#gs.o_q58k8