Daimler AG announced today that it has reached an agreement to unload its remaining 19.9 percent stake in Chrysler LLC.
Daimlers remaining 19.9 percent shareholding in Chrysler will be redeemed, and Daimler will forgive repayment of the loans extended to Chrysler, which were already written off in the 2008 financial statement, Daimler said in a prepared statement.
All told, Daimler will write off $700 million as a result of the deal, according to the statement.
The deal comes a day after the UAW agreed to a tentative deal to reduce Chryslers obligations to its health care fund.
The deal removes an obstacle from Chrysler's path toward its planned partnership with another European carmaker: Fiat S.p.A.
Daimler and Cerberus Capital Management LP had been haggling since last fall trying to find a way to dispose of Daimler's remaining interest in Chrysler to simplify Chrysler's ownership structure, which became more complex after the automaker was granted a $4 billion loan from the U.S. government in late December.