Italian American carmaker FCA, French PSA get shareholders’ nod on $52bn merger



by   |  VIEW 638

Italian American carmaker FCA, French PSA get shareholders’ nod on $52bn merger

Fiat Chrysler Automobiles NV, the London-headquartered Italian American carmaker alongside Paris-headquartered French automotive giant Group PSA, the maker of Peugeot, said in separate statements on Monday that their investors had voted to approve a slated $52 billion FCA-PSA merger deal which in effect would create the world’s fourth-largest carmaker.

Aside from that, both carmakers had been quoted saying earlier in the day that the merger deal would create a new entity, named as Stellantis, which would start off trading in money markets across Milan, Paris and New York as early as in two weeks.

FCA-PSA merger set to become a frontrunner in new era of electrification

On top of that, followed by the announcements made earlier in the day, several industry analysts were quoted saying that the newly formed entity, Stellantis, having had an annual production of an approximated 8 million units across the globe alongside a revenue bucket worth of more than €165 billion ($203 billion), would more likely to play a pivotal role in an ever-evolving landscape in the passenger car markets as the global auto industry looked to jump on the bandwagon of a new era of electrification, hybrid vehicles and autonomous driving technology.

Apart from that, both FCA and PSA had added on their statement that the carmakers were expecting to conclude their tie-up on January 16, ahead of an earlier signal while the automakers had been seeking to close the deal by the first quarter of 2021, adding that the newly formed Stellantis would have fourteen brands including Fiat Chrysler’s Fiat, Maserati alongside London-based carmaker’s US-focused Jeep, Dodge and Ram, while the merged entity would feature PSA’s Europe-focused Citroen, DS, Opel and Peugeot.

On top of that, both parties said in a joint statement following separate extraordinary shareholders meetings, held virtually earlier in the day, that shares of their merged entity would begin trading in Milan and Paris on January 18, while Stellantis shares would make its entrance in to NYSE on January 19.

Meanwhile, citing an out-and-out optimism over the deal, Group PSA Chief Executive and the future CEO of Stellantis, Carlos Tavares said in a statement, “We are ready for this merger”.