News World Fiat Chrysler and Peugeot join forces to create world's No.4 carmaker

Fiat Chrysler and Peugeot join forces to create world’s No.4 carmaker

Fiat Chrysler and Peugeot’s owner PSA said on Thursday they would join forces through a 50-50 share swap to create the world’s fourth-largest automaker.

The boards of the two groups have mandated their respective teams to finalise discussions and reach a binding memorandum of understanding in the coming weeks, the two automakers said in a joint statement.

FCA’s Chairman John Elkann will chair the combined group, while Peugeot’s Chief Executive Carlos Tavares will be the new CEO.

The deal comes at a time when car makers are grappling with a global downturn in demand and looking to develop technologically advanced, cleaner car models to meet ever more stringent anti-pollution rules.

The merger, once completed, is expected to generate 3.7 billion euros ($4.1 billion) in annual synergies, without any plant closures, they said.

Prior to the completion of the deal, Fiat Chrysler (FCA) will pay its shareholders a 5.5 billion euro special dividend and hand them its shares in its robot-making unit Comau, they said.

In addition, Peugeot will distribute to its shareholders its 46% stake in auto-part maker Faurecia.

French Finance Minister Bruno Le Maire welcomed the deal, saying it would give the two groups the critical mass needed to invest in cleaner technologies and meet industry challenges.

“The government will be particularly vigilant over preserving (the group’s) industrial footprint in France,” the finance ministry added in a statement.

The combined group, which will be headquartered in the Netherlands, will have an 11-person board, with six members coming from Peugeot including Chief Executive Tavares, and five from FCA including Chairman Elkann.

(Reuters)

Top Stories

Cats at Pancyprian Gymnasium area, Nicosia, poisoned again

Cats have been poisoned and abused again at the Pancyprian Gymnasium area in old Nicosia and the Association for the Protection and Welfare of...

British ministers prepare for social lockdown in northern UK, London

The British government is planning to enforce a total social lockdown across a majority of northern Britain and potentially London, to combat a second...

First migrant in Greek camp dies of COVID-19 since the pandemic

A male migrant died of COVID-19 late on Sunday, the first reported death of an asylum seeker since the pandemic broke out in Greece in late...

Greece calls on Turkey to condemn flag incident in Kastellorizo

Greece has called on Turkey to condemn and investigate what it said was an insult to its national flag on the Greek island of Kastellorizo. Greek...

Wealthy Britons step up citizenship shopping to thwart Brexit

The number of British entrepreneurs looking to "buy" citizenship from countries offering visa-free access to the European Union has risen sharply, investment migration firms...

Taste

Sheftalies

Sheftalies, a very tasty dish from the charcoal grill, are minced meat shaped into small sausages and wrapped in “panna” (suet). Panna is a...

Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...

Souvlakia

Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...