The boards of Directors of PSA and Fiat Chrysler yesterday approved the merger agreement, which is estimated at $ 50 billion, according to Autoblog, citing sources familiar with the negotiations.
Two automaker for six weeks ago announced their plans to merge. The merger will help companies solve a variety of problems, including the decline in demand, and will allow you to develop new cars, spending the less money.
A source close to the FCA, said that the company could officially announce the agreement today.
Under the agreement, the division of FCA Comau will remain part of the United group and will not be derived from it as planned in October. Comau is a company that specializes in industrial automation with an international network of 35 operating centers, 15 manufacturing facilities and 5 innovative centers around the world. The new leadership group will determine how to use the unit in the future.
It is expected that FCA and PSA will complete the transaction before the end of 2020. The result is a concern, every year sell 8.7 million vehicles. Thus, it will be the fourth largest after Volkswagen AG, Toyota and Renault-Nissan Alliance. The group includes the brands Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Citroen, Opel and Vauxhall. Carlos Tavares of PSA will become CEO and John Phelan of the FCA – the heir to the Italian Agnelli family, which controls FCA through the company Exor, Chairman of the Board of Directors of the combined company.
The FCA will have access to more modern automotive platforms PSA. This will enable it to meet strict emissions standards. PSA also focused so far on Europe, will gain access to the markets of North America and, in particular, the United States, where the car Alliance Peugeot Citroen and will be sold together with Chrysler, Ram and Jeep.
Mergers can lead to reductions of 400,000 jobs during the optimization process industries fear trade unions.