KKR's Purchase Of DaimlerChrysler MTU Aero Unit Approved
December 23, 2003
(Dow Jones Business News)- The European Union Commission Monday approved the EUR1.45 billion purchase by U.S. private equity firm Kohlberg Kravis Roberts & Co. of DaimlerChrysler AG's MTU Aero Engines GmbH unit. DaimlerChrysler is selling the unit as part of its strategy to divest non-core assets and focus on its automobile business. The company expects a net gain of EUR1 billion from the sale. The German government, which opposed the deal, is moving to enact a law controlling the sale of defense-related companies to foreign investors. Munich-based MTU makes engine components such as low-pressure turbines and high-pressure compressors for civil and military planes. The deal was approved under the E.U. Commission's simplified antitrust procedure. This clears mergers or acquisitions after one month if no objections are raised by third parties.