An employee of Fiat Chrysler’s Windsor Assembly Plant works in the Chrysler Pacifica Hybrid chassis in December 2016.
Fiat Chrysler
Shareholders of Italian-American automaker Fiat Chrysler and France-based PSA Groupe on Monday approved a merger plan to create Stellantis, the world’s fourth largest automotive group.
The vote was one of the final steps before the merger, which the companies expect to close on January 16. PSA CEO Carlos Tavares, who will lead the combined company, said the deal has removed all regulatory hurdles.
Stellantis ordinary shares will be traded on the Mercato Telematico Azionario in Milan and Euronext in Paris on January 18, followed by the New York Stock Exchange on January 19.
“We are ready. We are ready for this merger. We are ready for this value creation,” Tavares said at a virtual shareholders’ meeting Monday. He called this “a historic moment” for the company.
The merger is expected to generate approximately 5 billion euros or $ 6.1 billion in annual cost savings, according to officials. The automaker’s operations will largely take place in North America and Europe. Stellantis will span 14 car brands – from Fiat Chrysler’s Maserati, Jeep and Ram to PSA’s Peugeot, Citroen and Opel.
Plans for the merger were initially confirmed by the companies in late 2019. Fiat Chrysler, the world’s seventh largest car manufacturer, has been looking for a partnership for a number of years to achieve economies of scale and cost consolidation.