DaimlerChrysler sell its stake in Mitsubishi to Sachs
DaimlerChrysler AG has finally decided to dump its stake in the automaker Mitsubishi. The investment was not very lucrative for the company as Mitsubishi is struggling in the market. DaimlerChrysler has sold its entire 12.42 percent stake in the Japanese carmaker to Investment bank Goldman Sachs.
Sachs is now placing the shares with institutional investors around the world as per reports from news sources. DaimlerChrysler had made the investment in the Japanese carmaker to compliment their strategy of building a global car empire. However, Mitsubishi turned out to be the only Japanese automaker to run in losses leading to the German-U.S. auto giant cut off its financial lifeline to its former affiliate in April 2004.
They would however still have some close operational tie-ups with MMC, which includes the joint development of engines and vehicle platform sharing. They have also said that their existing projects with MMC would not be affected by their selling off the shares in the company. Market experts have said that the move by the company is a good one considering it would help them focus on their other profitable businesses.
Goldman Sachs has however declined to comment on their decision to purchase the stake in the Japanese automaker.