Fiat Chrysler Automobiles N.V. (FCA) and Peugeot S.A. (PSA) have signed a binding combination agreement for a 50/50 merger of their businesses to create the 4th largest global automotive OEM by volume and 3rd largest by revenue, according to a joint press release. FCA released a statement saying the deal will unite some of the most recognizable automobile brands under one company, from Dodge and Jeep to Maserati, Citroën and Opel.
This was an all-stock transaction, of which shareholders of the two companies will receive stock in the combined firm. A new company name has yet to be announced by FCA or PSA. According to a joint press release, the car makers’ state there will not be any plants closing due to the merger. PSA CEO Carlos Tavares will be the new company’s CEO, while Fiat Chrysler’s FCA Chairman John Elkann will become its chairman.
“Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services. I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigor and enthusiasm,” said Tavares.
“This is a union of two companies with incredible brands and a skilled and dedicated workforce. Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait – they see challenges as opportunities to be embraced and the path to making us better at what we do,” said Mike Manley, FCA CEO.