The $52 billion transaction, expected to be completed by the end of March, will result in a new company called Stellantis.
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The shareholders of French Peugeot car maker PSA Group massively approved on Monday morning, by a 99.85% majority, the company’s merger with Italy’s Fiat Chrysler, whose own shareholders were expected to vote in favor of the deal in the afternoon. The $52 billion transaction, expected to be completed by the end of March, will result in a new company called Stellantis.
- The combined group will become the world’s fourth-largest car maker behind Volkswagen, the Renault-Nissan alliance and Toyota Motor. Its brands include Jeep, Fiat, Dodge, Maserati, Peugeot, Citroën and Opel.
- The Italian and French-based groups announced their merger plans in December 2019, just a few months before the beginning of the coronavirus pandemic. They amended the terms of the deal in September 2020 to take into account the new situation and sweeten the offer for Fiat investors.
- The two companies then also revised upward their cost-cutting forecast, to $5 billion. Current PSA chief executive Carlos Tavares will take the helm of the combined group.
The outlook: Tavares’ first order of business will be to address the two car makers’ global overcapacity, and decide which plants to shut. And his other stated priority is the Chinese market, the world’s largest and most dynamic, where both Fiat and PSA have struggled.
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