Fiat Chrysler, Peugeot-owner PSA in $50 billion merger talks


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Fiat Chrysler, Peugeot-owner PSA in $50 billion merger talks

London-based Italian-American carmaker Fiat Chrysler Automobiles NV, often abbreviated as FCA, alongside Europe’s third-largest automaker, Peugeot-owner French PSA, had been in an advanced-stage talk to create a $50 billion merger, a Wall Street Journal report published late on Tuesday, the 29th of October 2019, had unveiled the issue citing a source familiar with the subject-matter who wished to remain anonymous given the scale of sensitivity of the issue.

Besides, followed by the release of Wall Street report, shares of London-based carmaker, FCA, soared more than 7.5 per cent in US trading, while neither the companies, nor the French government made any comment while being asked over the subject-matter.

Meanwhile, another source directly briefed over the subject-matter had unveiled following release of the Wall Street Journal report that PSA’s management board was set to meet as early as by Wednesday (October 30th) to discuss about the whereabouts of a potential merger with FCA.

Nonetheless, followed by the media reports of a merger talk between PSA and FCA which could be worth as much as $50 billion in market valuation, several industry analysts were quoted saying that a FCA-PSA merger would likely to face off a flurry of political, financial and governance-related obstacles, however, even if the hurdles were overcome, the new enterprise would still be met with a substantial scale of challenges.