FCA-PSA Merger Terms Tweaked
Fiat Chrysler Automobiles and PSA Group announced a few revisions to their planned merger on Monday. Unfortunately, ditching the Stellantis moniker when they become the world’s fourth-largest automaker wasn’t among the changes listed. Because it still sounds like a medication for people with arthritis.
Ask your doctor is Stellantis is right for you. Don’t take Stellantis if you’re pregnant or nursing.
As the duo wants to maintain a 50/50 split, they need to address “the liquidity impact on the automotive industry of the COVID-19 pandemic while preserving the economic value” of their original agreement. That has left PSA maintaining control of French parts supplier Faurecia. A special dividend to be distributed among its shareholders before closing is set at 2.9 billion euros (which was previously listed as €5.5 billion) while PSA’s 46 [percent] stake in Faurecia will be distributed to all Stellantis shareholders following the newly formed board’s approval.
“I cannot commend highly enough the commitment of the teams working towards the launch of Stellantis and of all our people in overcoming the extraordinary challenges COVID-19 has presented,” FCA CEO Mike Manley said the release. “Today’s announcement is a further, strong signal of a common determination to ensure that Stellantis has all the resources it needs to apply its unique assets, its creative energies and many opportunities to the creation of superior value for all our stakeholders.”
“With this new decisive milestone, we are moving all together towards our goal in the best possible condition with even greater prospects for Stellantis,” PSA CEO Carlos Tavares agreed. “I would like to take this opportunity to warmly thank the teams who have built reciprocal relations of trust, including during the COVID-19 confinement.”
Welp, corporate leadership seems to be on the same page in their prepared statements. FCA gets a pile of cash while PSA spins off one of the largest parts suppliers currently in operation. The companies estimated Faurecia’s capitalization around €5.86 billion.
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