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(new: statements by the ministers of France and Italy)
PARIS / ROM (dpa-AFX) – Clearing the way for new auto giant Stellantis: Shareholders overwhelmingly approved the mega-merger of its PSA (Peugeot) and Fiat Chrysler (Fiat Chrysler (FCA)) (FCA) groups. At separate general meetings on Monday there was nearly 100 percent approval, the companies reported.
“We are ready for this merger,” said PSA CEO Carlos Tavares. The 62-year-old will also lead the future fourth-largest automaker in the world with around 400,000 employees.
The multi-million dollar merger should now be completed on the Saturday after next (January 16), as the companies announced. So far, there has been talk of ending the big business at the end of March.
Tavares said that two healthy companies are merging. “This is a historic moment.” The German manufacturer Opel has been a part of PSA for a long time.
The EU competition authorities had already approved the merger “between equals” in December with certain conditions. The new partnership with major pillars in Europe and North America will lead 14 brands, including Opel, Peugeot, Citroën, Chrysler, Jeep, Alfa Romeo, Lancia, Abarth and Dodge. Brands should also continue to exist.
Before the Corona crisis, Fiat Chrysler and PSA together sold around 8.7 million vehicles a year and had a turnover of 170,000 million euros. Only Volkswagen (Volkswagen (VW) vz), Toyota (Toyota Motor) and the Franco-Japanese network Renault-Nissan (Nissan Motor) were bigger in 2019.
France and Italy, the home countries of Peugeot and Fiat, welcomed the deal. The newly formed manufacturer will further strengthen the leading role of the European automotive industry, French Economy and Finance Minister Bruno Le Maire and the head of the Italian economic development department Stefano Patuanelli said together in the evening. The “European leader” Stellantis will contribute to the ecological transition. “Both governments will also ensure that Stellantis contributes to industrial employment in Italy and France,” the ministers declared.
“Stellantis will be one of the world’s leading vehicle manufacturers,” said FCA President John Elkann. It is even more important that a company emerges with the size, resources, diversity and knowledge to “successfully seize the opportunities of a new era.” The 44-year-old will remain the head of the board of the new association: he is the grandson of the legendary Fiat patriarch Giovanni “Gianni” Agnelli (1921-2003).
Due to Corona restrictions in France, there were no face-to-face events for PSA shareholders. According to the company, PSA shareholders receive 1,742 Stellantis shares for one share. The new company will have its official headquarters in the Netherlands. The shares are scheduled to be listed in Milan and Paris from January 18 and in New York from January 19.
Tavares confirmed earlier statements that there should be synergies of five billion euros annually. Before the outbreak of the Corona crisis, which had a dramatic impact on the auto industry, he had ensured that no plants would be closed.
In his speech, Tavares praised the cooperation with the social partners in preparing for the merger, but did not elaborate on employment. In the French media it was said that a restructuring of the new association was inevitable in the context of the crisis. In France alone, according to industry data, more than 25 percent fewer cars were recorded last year.
Tavares said PSA and FCA are better positioned together. The industry faces a double burden of pandemic consequences and technological disruptions; electric mobility, for example, is a great challenge.
As reported by the regional newspaper “Le Parisien – Aujourd-hui en France”, the Agnelli family will be represented with around 14.4 percent in the new group. It follows the Peugeot family with 7.4 percent. The French state is on the boat through a holding company with 6.1 percent. About two-thirds of the shares are in free float ./cb/jon/DP/nas
