Fiat Chrysler and the owner of the PSA Peugeot Group announced the terms of a merger of two car companies – it will cost $ 48 billion will create the third largest automaker in the world.
The merger will also help to distribute the enormous costs of the development of electric and Autonomous vehicles. Shareholders of each automaker will own 50% of the combined company, said in a joint statement, the Agreement may be concluded for several weeks. The shareholders of Fiat Chrysler also will receive a special one-time dividend of $ 6.1 billion.
The combined company will be based in the Netherlands, which is currently the headquarters of Fiat Chrysler, though the head office of the North American operations will be placed near Detroit. John Elkann (John Elkann) from the family that founded Fiat, will be Chairman of the combined company, and the Executive Director of PSA, Carlos Tavares will take over as CEO.
The combined company will include approximately 410 000 employees and have an annual income of 190 billion dollars.