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Fiat, PSA to win EU approval for $38 billion merger: sources
Source: Reuters
APAC
OCTOBER 26, 2020 5:15 AM UPDATED AN HOUR AGO
Fiat, PSA to win EU approval for $38 billion merger: sources
By Foo Yun Chee, Giulio Piovaccari
3 MIN READ
BRUSSELS/MILAN (Reuters) - Fiat Chrysler and PSA are set to win EU approval for their $38 billion merger to create the world’s No.4 carmaker, people close to the matter said, as they strive to meet the industry’s dual challenges of funding cleaner vehicles and the global pandemic.
The green light from the European Commission would formalise the creation of Stellantis, a carmaking group that could tap hefty profits from selling Ram pickup trucks and Jeep SUVs to U.S. drivers to fund the expensive development of zero-emission vehicles for sale in Europe and China.
The all-share merger announced late last year would unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel and DS - while targeting annual cost cuts of 5 billion euros ($6 billion) without closing factories.
The Commission and Italian-American group Fiat Chrysler Automobiles (FCA) declined to comment. France’s PSA did not immediately respond to a request for comment.
-snip-
OCTOBER 26, 2020 5:15 AM UPDATED AN HOUR AGO
Fiat, PSA to win EU approval for $38 billion merger: sources
By Foo Yun Chee, Giulio Piovaccari
3 MIN READ
BRUSSELS/MILAN (Reuters) - Fiat Chrysler and PSA are set to win EU approval for their $38 billion merger to create the world’s No.4 carmaker, people close to the matter said, as they strive to meet the industry’s dual challenges of funding cleaner vehicles and the global pandemic.
The green light from the European Commission would formalise the creation of Stellantis, a carmaking group that could tap hefty profits from selling Ram pickup trucks and Jeep SUVs to U.S. drivers to fund the expensive development of zero-emission vehicles for sale in Europe and China.
The all-share merger announced late last year would unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel and DS - while targeting annual cost cuts of 5 billion euros ($6 billion) without closing factories.
The Commission and Italian-American group Fiat Chrysler Automobiles (FCA) declined to comment. France’s PSA did not immediately respond to a request for comment.
-snip-
Read more: https://www.reuters.com/article/us-fiat-chrysler-m-a-psa-eu/fiat-psa-to-win-eu-approval-for-38-billion-merger-sources-say-idUSKBN27B0XO