Dubai Holding, through its entity Dubai International Capital, has acquired a stake in the world’s second largest automaker – DaimlerChrysler.

Making the announcement, Mohammed Al Gergawi, CEO of Dubai Holding, said Dubai International Capital’s stake was valued at $1 billion, making it the third largest shareholder in the US-German automobile manufacturer. 
The acquisition was negotiated, structured and carried out by newly set up Dubai International Capital, which is part of Dubai Holding, he said.
 “This is a perfect time to acquire shares in DaimlerChrysler as the company begins to bear the fruits of   the merger between Chrysler Corporation and Daimler Benz,” observed Al Gergawi.
“DaimlerChrysler … is now ready to be the leader in the automobile manufacturing industry.” He added that the DaimlerChrysler management team had proved its efficiency and professionalism over the years. “We are proud to be in a position to support the company’s future growth. We have full faith in the current management, under the able leadership of Professor Jurgen E Schrempp, chairman of the board.”
 By acquiring a stake in one of the most respected firms globally, Dubai Holding - through Dubai International Capital - had positioned itself as a significant international investor, said Sameer Al Ansari, CEO of Dubai International Capital. “We have proven our ability to negotiate and execute complex financial deals.” He added that the company was currently looking at other investment opportunities that met its long-term investment and strategic objectives both from a risk and return prospective.
DaimlerChrysler’s management said: “DaimlerChrysler confirms Dubai’s purchase of shares. We welcome this, as Dubai International Capital is a shareholder with a long-term commitment convinced of DaimlerChrysler’s future potential.”
DaimlerChrysler is active in about 200 countries. As of the end of 2003, it had a workforce of over 360,000 and more than 100 production locations in 17 countries. Its passenger vehicle brands include Maybach, Mercedes-Benz, Chrysler, Jeep, Dodge and Smart, and the giant automaker sold almost 4 million passenger vehicles. DaimlerChrysler is also the worldwide leader in commercial vehicles with Mercedes-Benz trucks, Freightliner, Western Star, FUSO, Mercedes-Benz buses and Setra Kaessbohrer. In total more than 500,000 commercial vehicles were sold in 2003.