Daily Management Review

Peugeot and Fiat Chrysler sign merger deal


Fiat Chrysler and PSA Peugeot automakers' boards of directors approved the merger on an equal footing, both sides said. The merger will create the fourth-largest car manufacturer in the world, valued at approximately at $ 50 billion.

The parties expect to join forces in the development of electric vehicles and unmanned vehicles, share technology and reduce costs.

According to FCA and PSA press releases, the companies agreed to "work on a complete business combination through a 50/50 merger." The combined company will be led by PSA CEO Carlos Tavares, and John Elkann, who holds this position in Fiat Chrysler, will head its board of directors. There will be 11 people on the board, including Tavares.

Earlier, agreements were reported by The Wall Street Journal and the Dow Jones, citing sources. Information about the negotiations of the companies appeared earlier this week, it was officially confirmed on October 30.

Peugeot shares rose 4.5% at the opening of trading on Thursday, Fiat Chrysler price of securities jumped 8.9%.

In the summer of 2019, the FCA discussed a merger with the Renault SA group, but the deal did not take place.

source: cnn.com