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.
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.
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)