Summary

In November of 1998 Daimler-Benz AG of Germany, maker of Mercedes-Benz cars, acquired America's Chrysler for more than $38 billion in stock. The new company DaimlerChrysler AG became one of the world's largest automobile manufacturer, third behind General Motors and Ford Motor Company. The deal marked the end of the "Big Three" of U.S. carmaking.

Many projected that the merger would benefit both companies. It would allow both companies to broaden their global reach. Due to the saturation of the American market, Chrysler's opportunities for further growth are limited. The combination of the two companies would allow Chrysler to penetrate the European market and expand their business. Daimler-Benz would also profit from the merger by gaining a stronger postion in the American market. Daimler-Benz Chairman Juergen Schrempp announced that the merger would generate savings of $1.4 billion in 1999.

Timeline

5/7/98
* In London, Chrysler Chairman Robert J. Eaton and Daimler-Benz Chairman Juergen Schrempp announce plans to form a new company called DaimlerChrysler AG.

5/13/98
* The White House examines the impacts of the new trend, merger mania, on American industry and competition.

7/24/98
* The European Union has endorsed the Daimler-Chrysler merger.

7/31/98
* The U.S. Federal Trade Commission has approved the Daimler-Chrysler merger.

9/18/98
* Chrysler shareholders have approved the merger between Chrysler Corporation and Daimler-Benz AG.

10/20/98
* Four Daimler-Benz shareholders filed lawsuit challenging the merger.

10/26/98
* Daimler-Benz shareholders have approved the merger.

11/13/98
* The contract regarding the merger between Chrysler Corporation and Daimler-Benz AG is completed.

11/17/98
* Daimler-Chrysler stocks began trading on 19 financial markets around the world.