GERMANY - Chrysler sold to Cerberus for EUR 5.5bn

DaimlerChrysler has agreed to sell its Chrysler division to US private equity firm Cerberus for EUR 5.5bn. Cerberus will take an 80.1% stake with Daimler retaining 19.9%. The transaction has been supported by American unions. In 1998 Daimler paid $35bn for Chrysler and subsequently merged the two entities. Since the merger Chrysler has suffered from falling sales in the face of fierce competition from Japanese rivals and continued to post losses. Earlier this year the division announced 13,000 job cuts.