Fiat Chrysler Automobiles and Peugeot have inked a binding agreement of $50 billion tie up, the two companies said Wednesday, December 18, 2019 to move forward.
On Tuesday, Peugeot’s (UG) board backed a binding merger agreement with Fiat Chrysler FCA (FCAU), the Wall Street Journal reported. On Wednesday, December 18, 2019, the two companies said that the long-term shareholders EXOR NV (EXO), Bpifrance, the Peugeot family and China’s Dongfeng 489, have all committed to vote in favor of deal at the companies’ respective extraordinary general meetings.
Fiat Chrysler will not left the Comau division, under the signed agreement until after completion of deal and separate it promptly after it, all it is done for the benefit of new company’s shareholders. Fiat Chrysler and Peugeot also said that China’s Dongfeng Group has agreed to sell 30.7 million Peugeot shares back to Peugeot, lowering its stake in the merged company to 4.5% that is also confirming the earlier report in The Wall Street Journal.
Fiat Chrysler Automobiles and Peugeot decided to the tie-up at the end of October, and under the terms of the agreement each company’s shareholders will own 50 percent of the new entity. The Chief Executive of Peugeot, Carlos Tavares will be CEO and Fiat Chrysler’s John Elkann will remain the chairman.
And hopefully the completion of deal expected to close between 12 to 15 months.