“FCA and PSA have reached a merger agreement. The Italian-American group announced this morning. “Fiat Chrysler Automobiles NV (FCA) and Peugeot SA (Groupe PSA) have today signed a binding Combination Agreement that provides for a 50/50 merger of their respective businesses to create the world’s 4th largest automotive manufacturer by volume and 3rd largest by revenue,” the note reads. The proposed combination is expected to close in 12-15 months, subject to customary closing conditions, including approval by the two companies’ shareholders at their respective extraordinary meetings and satisfaction of antitrust and other regulatory requirements. The combined company will have annual sales of 8,7 million vehicles, revenues of nearly €170 billion3, recurring operating profit of over €11 billion4 and an operating margin of 6,6%, based on the aggregation of 20185 resultsXNUMX. Carlos Tavares, Chairman of the Management Board of Groupe PSA, said: “This merger represents a great opportunity to achieve an even stronger position in the industry through our commitment to leading the transformation towards a world with green, safe and sustainable mobility and to offer our customers world-class products, technologies and services. I am fully convinced that with their immense talent and collaborative approach, our teams will be able to maximize performance with energy and enthusiasm.” Mike Manley, Chief Executive Officer of FCA, added: “This is the union of two companies with incredible brands and passionate and skilled people. Both have faced extremely challenging times and emerged even more agile, smarter and formidable. Our people have one thing in common: they look at challenges as opportunities to be seized because they represent the path to making us even better at doing what we do.”
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