Daimler-Chrysler's plan to acquire Fonton delayed

Shanghai. August 22 (Gasgoo.com) – Daimler-Chrysler's plan to acquire Fonton's equity will be delayed by a half year, Beijing Auto's Fonton Motor Company announced yesterday.

The transaction date will be postponed by a half year, the announcement said. Under the original agreement, the transaction will be made no later than April 30 2007; however the date has been postponed to Oct 31, 2007 according to a new agreement.

Earlier this year, Daimler sold Chrysler to a private equity firm. The split plan has affected Daimler-Chrysler's deal with Beijing Automotive Industry Holding Co (BAIC).

BAIC also has a joint venture with Daimler Chrysler called BBDC (Beijing Benz Daimler Chrysler). It is unclear that whether the joint venture will be split into two parts and the issue will be discussed in September, according to a senior BAIC official.