Fiat has completed the acquisition of the American company Chrysler, according to Reuters. With the help of the American automaker, the Italian group hopes to return to profitability in Europe.
For the possession of Chrysler, Fiat paid a total of $4.35 billion. The final stake (41.5%) was purchased fr om the VEBA Health Trust, established to fund the medical needs of the U.S. Auto Workers Union (UAW). The deal was worth $3.65 billion, of which Chrysler provided $1.9 billion and Fiat provided the remaining $1.75 billion. Chrysler will pay the union a total of $700 million over the next four years as part of the deal.
The acquisition of Chrysler will make it easier for Fiat to use the American company's technology. The Italian automaker will also be able to improve its financial situation, since Chrysler, unlike Fiat, is a profitable enterprise.
On January 29, Fiat's board of directors will determine the future plans of the combined company and decide wh ere the automaker's headquarters will now be located. The issue of the company's listing outside of Italy will also be resolved.
Negotiations for a full buyout of Chrysler shares from the union-controlled trust UAW lasted almost a year. During this time, representatives of the workers' organization repeatedly announced their intention to put Chrysler shares up for public auction due to price disagreements with the Italian side, which in the end was avoided.
Fiat completes takeover of Chrysler
