Shareholders of the French group PSA and the Italian-American FCA (FIAT-Chrysler) have approved a deal to merge their companies, resulting in a united concern called Stellantis. The vote on the deal took place on January 4, the date of entry into force of the agreement will be announced in the near future.
Earlier, the European Commission approved the merger of PSA with FCA with a number of conditions. To remove its claims about the risks of excessive concentration of certain sectors in the hands of the new combined corporation, both companies accepted a package of obligations: in particular, they agreed to soften the rules of the agreement between PSA and Toyota on work in Europe, as well as create conditions for licensed repair and maintenance of Peugeot and FCA by independent market participants.
The plans for the merger of companies were announced at the end of October 2019, and the corresponding agreement was signed in December of the same year.
Both parties are eager to complete the merger, as it promises to save them 5 billion euros ($6.1 billion) annually through economies of scale in production, streamlining the organizational structure and reducing 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.
Shareholders of PSA and FIAT-Chrysler approve merger deal
