Yahoo Finance Fiat Chrysler and PSA merge to become Stellantis
Fiat Chrysler Automobiles (FCA.MI) and Peugeot-maker, PSA Group (UG.PA) have finally completed their long-awaited merger to create Stellantis — the world’s fourth-largest auto group.
The newly formed firm will start trading in Paris and Milan on Monday and in New York on Tuesday.
“The merger between Peugeot S.A. and Fiat Chrysler Automobiles N.V. that will lead the path to the creation of Stellantis N.V. became effective today,” the two automakers said in a statement on Saturday.
Stellantis now has the heft to compete with changing industry trends, including taking on rivals like Volkswagen and Toyota to fund the shift to electric driving.
It took the Italian-American and French automakers over a year to finalise the $52bn (£38.3bn) deal, after the global economy was brought to a standstill due to COVID-19.
In October 2019, the companies first announced plans to merge and create a group with annual sales of around 8.1 million vehicles.
The merger was backed by more than 99% of PSA investor votes earlier in January. Fiat Chrysler shareholders also approved the merger, with more than 99% voting in favour.
According to the latest industry figures, Stellantis ranks as the world’s third-largest auto maker by sales, according to 2019 figures. At Friday’s close, the company was valued at more than $51bn.
READ MORE: $52bn Fiat Chrysler and PSA merger signed off by shareholders
The deal will bring PSA brands such as Peugeot, Citroen and Vauxhall together with Fiat, Jeep and Chrysler under one roof.
Stellantis, derived from Latin meaning to brighten with stars, will be headed by current PSA chief executive Carlos Tavares, who will hold his first press conference as Stellantis CEO on Tuesday, after ringing NYSE’s bell with Chairman John Elkann.
Meanwhile, FCA’s CEO, Mike Manley will head Stellantis’ key North American operations.
Manley has said 40% of the carmaker’s expected synergies would come from convergence of platforms and powertrains and from optimising research and development (R&D)investments.
35% will be from savings on purchases, and another 7% will come from savings on sales operations and general expenses.
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