01 February, 2023 - 02 February, 2023
New York, United States
07 March, 2023 - 09 March, 2023
Novo Hamburgo/RS - Brasil
13 March, 2023 - 15 March, 2023
22 April, 2023 - 26 April, 2023
North Carolina, USA
17 June, 2023 - 20 June, 2023
Riva del Garda , Italy
The automotive manufacturing groups announced they agree to merge, with the new entity to have the “leadership, resources and scale to be at the forefront of a new era of sustainable mobility”.
Fiat Chrysler Automobiles (FCA) and Groupe PSA signed a binding Combination Agreement on December 19, providing for a 50/50 merger of their businesses to create the fourth largest global automotive OEM by volume and the third largest by revenue. With its combined financial strength and skills, the merged entity will be particularly well placed to provide innovative, clean and sustainable mobility solutions, both in a rapidly urbanising environment and in rural areas around the world, according to Groupe PSA.
The gains in efficiency derived from larger volumes, as well as the benefits of uniting the two companies’ strengths and core competencies, “will ensure the combined business can offer all its customers best-in-class products, technologies and services and respond with increased agility to the shift taking place in this highly demanding sector”. The combined company, which will cover all key vehicle segments from luxury, premium, and mainstream passenger cars through to SUVs and trucks and light commercial vehicles, is expected to have annual unit sales of 8.7 million vehicles, with revenues of nearly €170 billion, recurring operating profit of over €11 billion and an operating profit margin of 6.6%, all on a simple aggregated basis of 2018 results.
The new company will be based in the Netherlands and will be listed on Euronext (Paris), the Borsa Italiana (Milan) and the New York Stock Exchange. Under the proposed by-laws of the combined company, no shareholder would have the power to exercise more than 30% of the votes cast at shareholders’ meetings. Completion of the proposed combination is expected to take place in 12-15 months, subject to customary closing conditions, including approval by both companies’ shareholders at their respective Extraordinary General Meetings and the satisfaction of antitrust and other regulatory requirements.