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News > Deals
Daimler deal approved
September 18, 1998: 6:16 p.m. ET

Shareholders approve $38 billion deal to create world's fifth-largest carmaker
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NEW YORK (CNNfn) - Shareholders for Chrysler Corp. and Daimler-Benz Friday overwhelmingly approved the merger of the two automakers, paving the way for the $38 billion transatlantic deal to close later this year.
     Nearly 98 percent of voting Chrysler stockholders approved the merger at their vote in Wilmington, Del. while more than 99 percent of Daimler shareholders present or represented at a separate shareholders' meeting in Stuttgart, Germany also approved the deal.
     The merger of Chrysler and Daimler-Benz will create the world's fifth-largest automaker.
     "We are becoming part of something even bigger and better, something that will make our future even brighter," Chrysler Chairman Robert Eaton said.
     He added the merger will "protect what we have built and parlay it into something more, (something) that stands a very good chance of becoming the number one automobile and transportation company in the world."
     Daimler-Benz announced plans to merge with Chrysler in May. The combined entity -- which will be called DaimlerChrysler AG -- will compete in virtually every segment of the market, offering everything from $11,000 subcompacts to $100,000 Mercedes sedans.
     For Chrysler, the deal means entry to the all-important European market, where the Detroit-based carmaker has been living in the shadows of its cross-town rivals, General Motors Corp. (GM) and Ford Motor Co. (F).
     For Daimler-Benz, the merger provides a second line of moderately priced cars and trucks and paves the way for the German company to expand in the United States.
     Shares of Chrysler (C) closed at 51-1/2 Friday, up 1-5/8 on the New York Stock Exchange.Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.