Canada sells remaining interests in Chrysler to Fiat
Updated: 2011-07-22 09:05
(Xinhua)
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OTTAWA - Canadian Finance Minister Jim Flaherty announced on Thursday that Canada has sold its remaining interests in Chrysler Group LLC to Fiat for $140 million.
"Canada has now sold its remaining interests in Chrysler Group LLC to Fiat for $140 million, fulfilling our commitment to exit from ownership of Chrysler as quickly as possible while maximizing value for taxpayers," Flaherty said in a press release.
Flaherty said that Chrysler's recent repayment of its loans was an important step in the turnaround of this company.
Canada will receive $125 million for its remaining 1.7 percent ownership stake in Chrysler, and an additional 15 million US dollars as a portion of proceeds arising from the assignment to Fiat of an agreement between the US Department of the Treasury and the United Auto Workers (UAW) retiree medical trust. One-third of the proceeds will be given to the Government of Ontario, with two-third to the federal.
In 2009, the US Treasury, the Canadian government, and the UAW agreed to help bail Chrysler out of a bankruptcy restructuring. As part of that deal, the Canadian government lent a collective 1. 7-billion Canadian dollars (about $1.8 billion) to Chrysler, which was repaid in May, in addition to taking an ownership stake in the company.
Flaherty said that approximately 52,000 Canadian jobs were protected by the action to support the automotive industry.