Break-in phase

18 December 2019 By Lisa Jucca, Christopher Thompson Follow @LJucca

PSA and FCA are to create the world’s fourth-largest carmaker. But with investors yet to buy into the promise of 3.7 bln euros of annual savings, a deal was the easy part. Peugeot boss Carlos Tavares still has to work his integrational magic to get the market on side.

This content is for Subscribers only

Context News

Fiat Chrysler Automobiles and Peugeot owner PSA have agreed to merge to form the world’s fourth-largest carmaker by volume, the companies said on Dec. 18.

Under the terms of the deal, FCA shareholders will receive one share in the new company for each FCA share owned. PSA shareholders will receive 1.742 shares in the new company for each PSA share owned.

China’s Dongfeng Motor will sell 30.7 million shares to PSA before the deal is completed, resulting in an ownership stake of 4.5% in the new group.

Email a friend

Please complete the form below.

Required fields *