Cerberus acquiring majority of Chrysler Group for $7.4 billion

Cerberus acquiring majority of Chrysler Group for $7.4 billion

Private equity firm Cerberus has confirmed that they are going to buy a majority of DaimlerChrysler’s struggling Chrysler Group.

They are going to pay $7.4 billion for this deal. For this price, they would get a 80.1 percent stake in Chrysler and its related financial services business.

Chrysler President Tom LaSorda spoke on this decision: “Cerberus is the right strategic buyer for Chrysler, with a long-term commitment to Chrysler’s growth and success. They are committed to working constructively with both union leadership and Chrysler’s management team to help Chrysler realize its full potential.”

The company further revealed that they are not going to cut any more jobs other than what they have already announced.

If the deal goes through DaimlerChrysler would rename itself to Daimler AG. They would also be paying 650 million Euros to cover long-term liabilities at Chrysler.

Cerberus Chairman John Snow had this to say on this deal: “Our approach is fundamentally long term. We don’t think about the next quarter. We don’t think about what analysts have to say about us. Our capital is patience.”