Fiat Chrysler and PSA Group finalised a 50:50 merger deal

KUALA LUMPUR: Fiat Chrysler and PSA Group have recently concluded a merger deal at 50:50 tie-up. The merger marked the creation of worlds fourth-largest automaker with an estimated value of RM207.8 billion.

The merged group is set to have a workforce of around 400,000, with a combined entity of 14 brands under the two automobile giants, some of them being, Jeep, Citroën, Maserati, Fiat, Dodge, Alfa Romeo and Peugeot. Out of the total brands, five of them come from the PSA Groups and nine from FCA.

“This is a merger between two healthy companies,” said PSA Chairman and CEO Carlos Tavares during a conference call with financial analysts. “We are not only proud but very excited about creating this new company that is going to deliver a new leader for a new era in sustainable mobility.”

FCA CEO Mike Manley added, “with this merger; we’re actually going to execute what is only been theorized many times before, which is smart industry consolidation.”

All the brands mentioned previously are said to be a part of the new merger and plans to produce as many cars in Europe under the brand tag of AG. The post for the chairman of the newly merged company is said to be handed over to John Elkann, Fiat Chrysler’s chairman, while, PSA Chief Executive Mr Tavares is supposed to serve as the CEO over a five-year term.

The new binded company is set to have its headquarters in the Netherlands, which is currently home to FCA. The company plans to retain the major regional offices in Italy and France, along with the combined corporate and technical center which is based outside of Detroit, initially built for the old Chrysler Corp.

The merger which was finalised by signing a binding combination agreement is expected to complete the transaction phase within 12 to 15 months, shareholder approval and regulatory clearances.

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