French PSA (Peugeot-Citroen) and Italian-American FCA (FIAT-Chrysler) plan to complete the merger into a mega-group at the end of January 2021. As previously reported, the combined company will take the name Stellantis and become the fourth largest automaker in the world.
The holdings agreed to merge back in October 2019, since then they have been going through bureaucratic procedures. The final approval of the EU antitrust authority should be issued before the end of 2020. A meeting of companies is scheduled for January 4, during which signatures approving the deal must be received from shareholders, writes Automotive News.
The resource reports that both parties are eager to complete the merger, as it promises them savings of 5 billion euros ($6.1 billion) annually due to economies of scale in production, streamlining the organizational structure and reducing the management staff.
The estimated capitalization of the Stellantis concern will be 42 billion euros ($52 billion). The parent legal entity of the company will be located in the Netherlands, and its shares will be listed on the Paris, Milan and New York stock exchanges.
For Stellantis, a new management team will be selected from the top management of the two concerns. Carlos Tavares from PSA has already been elected CEO of the unified company, until 2014 he worked at Renault-Nissan and was the closest associate of the head of the alliance, Carlos Ghosn, who later fell into disgrace due to criminal prosecution in Japan.
FCA is strong in its position in the North American market (USA, Canada, Mexico). The lion's share of FCA's profits comes from the American market. The concern includes the brands FIAT, Chrysler, Jeep, Dodge, RAM, Alfa Romeo, Maserati, Lancia.
PSA, in turn, is closed to the European market - the EU accounts for 90% of the concern's car sales. PSA unites the brands Peugeot, Citroen, DS, Opel, Vauxhall, Aixam.
PSA and FIAT-Chrysler will merge into a single group in early 2021
