Peugeot-Citroen and Fiat Chrysler to merge into mega-group in January
The combined company will become the fourth-largest automaker in the world and the third-largest in terms of revenue.
The French company PSA (Peugeot-Citroen) and the Italian-American concern FCA (Fiat Chrysler) intend to complete the merger at the end of January 2021. This is written by the portal Automotive News.
The merger was announced back in October 2019, but a few months later, the coronavirus pandemic put the signing of the agreement into question - this was due to the collapse of the economy in the leading world markets, including the United States and Europe, with a halt in production at the largest car factories, as well as with a drop in sales of new cars. But negotiations continued in the spring. Then the name Stellantis was born. In early November, it became known what the company's logo will be.
According to Automotive News, at the end of 2020, the holdings will be approved by the EU antimonopoly authority, and in early January, company executives will meet and approve the deal.
Bloomberg writes that the companies want to merge "as soon as possible" and do it ahead of schedule, but in reality, it can hardly be called "ahead" - the first quarter of 2021 was originally planned when the merger became known a year ago.
The parties want to complete the merger as soon as possible, because it will help the mega-group to save about 5 billion euros due to the scale of production and optimization of the structure.
According to estimates, the capitalization of Stellantis will amount to 42 billion euros, and the head office will be located in the Netherlands. The board of directors will have 11 members: five people each from FCA and PSA, as well as one leader - the current head of Peugeot-Citroen Carlos Tavares, who will also lead the team from PSA. The team leader from FCA will be Mike Manley - the current CEO of Fiat Chrysler.
Companies should unite with an equal number of shareholders, which will reduce the cost of developing new models and reduce the cost of producing cars. Forecasts show that the mega-concern will sell 8.7 million cars in the first year and will be second only to Volkswagen, Toyota, and Renault–Nissan–Mitsubishi in terms of sales.