Oct 31, 2019
Fiat Chrysler and Peugeot owner agree to pursue merger
France's PSA, which owns Peugeot, and Fiat Chrysler have agreed to pursue a merger that would create the world's fourth largest carmaker and reshape the automotive sector. The two companies intend to forge a 50-50 all-stock merger in which Carlos Tavares, PSA chief, runs the business and John Elkann - the scion of Italy's Agnelli family, which controls FCA - becomes chairman. The 11 person board will comprise of six members appointed by PSA, including Mr Tavares, and five members appointed by FCA. In order to balance the value of the two companies, the PSA shareholders are to receive a roughly €3bn special dividend from the sale of the carmaker's 46 per cent stake in parts maker Faurecia. There were be a 7 year standstill for the group's largest shareholders - Exor, BPI, Dongfeng and the Peugeot family. There will also be a three year lock bar for the Peugeot family which can increase its 12.2 per cent stake by up 2.5 per cent by buying shares from BPI or China's Dongfeng.
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