PARIS: Shareholders in Fiat Chrysler (FCA) and Peugeot owner PSA gave their blessing yesterday to a $52 billion mega-merger, one of the last steps towards creating Stellantis, the world’s fourth largest automaker.
With annual production of around 8 million vehicles worldwide and revenues of more than 165bn euros ($203bn), Stellantis is expected to play a key role in the auto industry’s jump into the new era of electrification.
Stellantis will have 14 brands, from FCA’s Fiat, Maserati and US-focused Jeep, Dodge and Ram to PSA’s traditionally Europe-focused Peugeot, Citroen, Opel and DS.
At two separate extraordinary shareholder meetings, held virtually, investors in each group backed the merger with approval rates above 99 per cent of votes cast.
“We are ready for this merger,” PSA Chief Executive and Stellantis future CEO Carlos Tavares said, adding that the date for the closure of the deal would be announced shortly. He said the deal had now passed all regulatory tests.
FCA chairman John Elkann, the future chairman of Stellantis, said the new automaker would “play a leading role as the next decade redefines mobility”.
FCA CEO Mike Manley –who will head Stellantis’ key north American operations – said 40pc of the expected synergies form the merger, projected at more than 5bn euros, will come from convergence of platforms and powertrains and from optimising R&D investments.