Fiat-Peugeot’s parent company approves the merger… launches the world’s fourth largest automobile company

Input 2021.01.05 12:02

The Wall Street Journal (WSJ) reported on the 4th (local time) that the merger between Italian-US joint venture Fiat Chrysler (FCA) and French automaker PSA Group, known as Peugeot, has been approved.

According to the WSJ, the FCA and PSA held a video shareholders’ meeting on the same day and passed the merger proposal. The merger proposal received unanimous support from both shareholders. The merger process is virtually finished with the newly established corporation listing on the stock market.

With this, the world’s fourth-largest automaker was launched. According to shareholder approval, the launch of a new merged company called Stellaantis is also imminent. Stellaantis is the world’s fourth-largest automobile company with 14 brands including Fiat, Maserati, Jeep, Dodge, Peugeot, Citroen, and Opel, taking its first step into the global market.

FCA-PSA said in a joint statement after the general shareholders’ meeting that the listing will be completed on the 16th of this month, and stock trading will start on the 18th in the Milan and Paris stock markets and on the 19th in the New York Stock Exchange. Initially, the merger was aimed at within the first quarter of this year, but the step-by-step process proceeded with speed and the time was greatly shortened.

Based on the combined results of FCA-PSA in 2019, before the new coronavirus infection (Corona 19), the annual production volume is 8.7 million units and sales of 170 billion euros (about 226 trillion won). The only companies ahead of Stellaantis in annual production are Volkswagen of Germany, Toyota of Japan, and the Renault-Nissan alliance.

FCA-PSA is also expected to generate a synergy effect of 5 billion euros (approximately 6 trillion won) due to the combination of production platforms and cost reduction following the merger. The chairmanship of Stellaantis will be succeeded by John Elkan, the current chairman of the FCA, and the CEO of the company Carlos Tavares, PSA Group CEO.

In an interview with WSJ, Chairman Elkan said, “Stellaantis will become one of the leading companies in the global automobile market while the concept of’mobility’ is expected to be re-established in the next 10 years.” Showed.