Fiat Chrysler and Peugeot Confirm Monster Merger

This week Fiat Chrysler and Peugeot confirmed a deal to create the world’s fourth-largest carmaker.

According to a Wall Street Journal report, the deal would be a 50-50 share swap and an “all-share merger of equals.”
The news comes just a few months after Fiat Chrysler had ended its merger discussions with Renault.

The new company’s shares will be listed in New York, Paris and Milan with FCA’s John Elkann becoming the chairman and Peugeot’s Carlos Tavares would be CEO.

“Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders,” they said in a statement.

“In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency.”

The PSA board approved the merger and the Fiat Chrysler board met Wednesday. Executives have briefed regulators in the U.S. and France according to the Wall Street Journal report.

Disclaimer: We have no position in Fiat Chrysler Automobiles NV (NYSE: FCAU) and have not been compensated for this article.