Concern FC (Fiat Chrysler) and PSGroup (Peugeot Citroen) signed a definitive merger agreement. The deal is estimated at $ 50 billion, and after the merger, the new concern will become the fourth largest automaker in the world after Volkswagen, Toyot and the Renault-Nissan-Mitsubishi alliance. It is reported by Automotive News.
- The full merger is expected to take place in the next 12-15 months.
- The board of directors of the company will include six representatives from PS and five representatives from FCA. In the first five years, the new concern will be headed by the CEO of the French company Carlos Tavares.
- Thanks to the merger, companies will be able to save about $ 4 billion annually. This will be facilitated by joint purchases for production, as well as the combination of technologies.
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For the transaction, the PS concern bought from its shareholder, the Chinese company Dongfeng Motor Group, a 12.2 percent stake in its own company for $ 750 million.
- The new alliance will be capable of producing about 8.7 million vehicles of 16 brands annually.
Thanks to the merger, FC will gain access to the new automotive developments of the PSA group. This will help meet modern environmental standards. At the same time, PSA, which is now focused mainly on the European market, will be able to enter the US market.
The automakers have not yet decided on a new name for the concern. In addition, the deal is under the supervision of regulatory authorities, as potentially about 400 thousand employees of the companies could be left without work.
