The merger of FCA and PSA has opponentsJanuary 1, 2021
The merger of Fiat Chrysler Automobiles and Groupe PSA came through one of the last hurdles earlier this month, but the companies are now facing objections from Walter P. Chrysler’s great-grandson.
As part of his alternative buyout proposal, Frank B. Rhodes, Jr. proposes that the combined venture not use the much-talked about name Stellantis. Instead, he proposes that the automaker become known as the Chrysler-Dodge-Jeep-Ram Corporation.
In addition, Rhodes wants the company’s headquarters in the United States. His proposal also calls for a bonus for existing management and staff based on tenure. In addition, the proposal says that in addition to the price to be agreed upon and the payment of all existing debt, the current shareholders will receive the rights to acquire shares in the buying company if it goes public in the future.
In a statement, Rhodes said, “This alternative proposal, in my opinion, is superior to the planned merger and will result in the return of the Chrysler-Dodge-Jeep-Ram brands to the United States and the abandonment of the proposed Chinese and foreign headquarters implicit in the merger.”
While the proposal has little chance of gaining support, Rhodes has filed an objection to the Stellantis merger with the US Foreign Investment Committee. He also advises Senators to oppose the merger, as it will “rob America of future profits and technology.”
The latest attempt will likely go nowhere, as shareholders are expected to approve the merger on January 4th. Thereafter, the transaction must be completed by the end of the first quarter of 2021.
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