FCA and Peugeot complete merger deal

FCA and Peugeot complete merger deal

December 18, 2019 0 By autotimesnews

Sources said Fiat Chrysler Automobiles and Peugeot will meet on Tuesday to negotiate a final $ 50 billion merger agreement to create the fourth largest automaker in the world.

A source close to the FCA said the two companies could announce the signing of a mandatory memorandum on Wednesday, and then hold a conference call to explain further details later that day.

Two midsize car manufacturers six weeks ago announced plans to merge to help them cope with big challenges in the industry, including the downturn in global demand and the need to develop costly cleaner cars to keep pace with pollution regulations.

On the eve of the meetings, organizations representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP unanimously approved the proposed memorandum of understanding for the planned merger, a source familiar with the situation said.

FCA and PSA said they would strive to complete the deal by the end of the year to create a group with 8.7 million annual car sales. This would allow him to take fourth place in the world after Volkswagen, Toyota and the Renault-Nissan alliance.

Carlos Tavares of PSA will be executive director, and John Elkann of FCA will be the heir to the Italian Agnelli family, which controls FCA through its holding company Exor, chairman of the combined company.

The group will include the brands Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall, which will allow it to serve the mass and premium markets of passenger cars, as well as the markets of trucks and light commercial vehicles.