DaimlerChrysler selling their MTU diesel motor unit to EQT
One of the top automakers in the United States, DaimlerChrysler has announced that they are selling their heavy motor unit MTU Friedrichshafen to Swedish buyout firm EQT. The company has however not revealed the exact purchase price but did mention that EQT has agreed on an enterprise value of 1.6 billion euros. The company said in a statement: “In consideration of cash, cash equivalents, debts and pensions, DaimlerChrysler will benefit from a cash inflow of an estimated 1.0 billion euros.â€
The deal would require approval from the regulatory authorities and DaimlerChrysler expects it to help boost their operating profit by 0.4 billion euros. The company hopes that the deal would be complete by the end of first quarter in the New Year. Market analysts believe that this deal is one of the many ways, company is exploring to avoid cutting jobs in the market where sales are falling, and their competitors like GM and Ford are resorting to closing down plants.
Some of the other players interested in the deal were Kohlberg Kravis Roberts and Dubai International Capital. Other than that, market reports also claims that German truck maker MAN was also considered by the company. Ruediger Grube, a representative of DaimlerChrysler said in a statement: “As the prices under discussion with the three bidders were very similar, we decided in favor of the bidder with the most convincing concept.â€