DaimlerChrysler AG today announced that an affiliate of Cerberus Capital Management will acquire 80.1% of Chrysler Group for $7.4 billion. The deal is expected to close in the third quarter, subject to regulatory approval. A new company Chrysler Holding LLC will be established. DaimlerChrysler will retain a 19.9% equity stake, said David Elshoff, a Chrysler Group spokesman. Predecessor company Daimler-Benz AG acquired Chrysler Corp. in 1998 for $36 billion.
Chrysler Holding will assume the Chrysler Groups pension and postretirement health-care obligations, said Mr. Elshoff. Chrysler had $24.6 billion in pension assets as of Dec. 31, and $22.6 billion in pension obligations. Peter Duda, a Cerberus spokesman, said the private equity manager does not plan to make changes in the investment management of the Chrysler pension plans.