DaimlerChrysler sells engine divisions

Dec. 28, 2005 at 7:25 AM

STUTTGART, Germany, Dec. 27 (UPI) -- DaimlerChrysler AG expects to get $1.19 billion from selling two engine-making units to a private equity fund based in Sweden.

EQT Partners AB is buying the MTU Friedrichshafen heavy-engine division and Detroit Diesel Corp. unit's off-highway business for an enterprise value of $1.9 billion, a sum that includes payment and debt assumption, the German automaker said Wednesday.

DaimlerChrysler, which expects its net income to rise by about $357 million because of the deal, said the divestment was calculated to help it focus on its core business.

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