With an agreement in place, the two companies will now begin to work on how they can achieve their target of cutting costs
This combination of file pictures shows French carmaker PSA and US-Italian rival Fiat Chrysler have signed an agreement to create the world's fourth largest automaker, they said in a joint statement on December 12, 2019. (Photos by MARCO BERTORELLO and Joël SAGET / AFP)
Fiat Chrysler (FCHA.MI) and Peugeot maker PSA (PEUP.PA) have reached to an agreement of over a roughly $50 billion merger to create the world’s fourth largest automaker.
“Fiat Chrysler Automobiles and Peugeot SA (Groupe PSA) have today signed a binding combination agreement providing for a 50/50 merger of their businesses to create the fourth largest global automotive original equipment manufacturer by volume and third largest by revenue,” the statement said, adding that the tie-up would not involve any plant closures.
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The two giant firms also said that they expected the deal to close in the next 12-5 months and they would come up with a name in few months.
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With an agreement in place, the two companies will now begin to work on how they can achieve their target of cutting costs by $4.1 billion each year without closing factories.
(With input from agencies)
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