Groupe PSA and Fiat Chrysler agree to merge

Fiat Chrysler Automobiles (FSA) and Peugeot SA (Groupe PSA) have signed a binding Combination Agreement providing for a 50/50 mergers of their businesses to create the fourth largest global automotive OEM by volume and third largest by revenue.

The proposed combination will be an industry leader with the management, capabilities, resources, and scale to successfully capitalise on the opportunities presented by the new era in sustainable mobility.

Completion of the proposed combination is expected to take place in 12 to 15 months, subject to customary closing conditions, including approval by both companies’ shareholders.

Carlos Tavares, Chairman of the Managing Board of Groupe PSA, said: “Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe, and sustainable mobility and to provide our customers with world-class products, technology, and services.”

“I have every confidence that with their immense talent their collaborative mindset, our teams will succeed in delivering maximised performance with vigour and enthusiasm.”

Mike Manley, CEO of FCA, said: “This is a union of two companies with incredible brands and a skilled and dedicated workforce. Both have faced the toughest of times and have emerged as agile, smart, formidable competitors.”

“Our people share a common trait, they see challenges as opportunities to be embraced and the path to making us better at what we do.”