Fiat Chrysler, Peugeot join forces to create world’s No.4 carmaker

epa07960246 (FILE) - Signage of Italian-US car manufacturer FCA, Fiat Chrysler Automobiles, in Frankfurt am Main, Germany, 04 May 2018 (L) and PSA Group signage in Paris, France, 06 March 2017 (reissued 30 October 2019). Reports on 30 October 2019 state the European car manufacturers PSA Group and Fiat Chrysler Automobiles FCA are engaged is talks discussing a merger that would create a global automobile manufacturing giant valued at more than 44 billion euro. EPA-EFE/MAURITZ ANTIN / CHRISTOPHE PETIT TESSON

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Fiat Chrysler and Peugeot’s owner PSA said on Thursday they would join forces through a 50-50 share swap to create the world’s fourth-largest carmaker.

The boards of the two groups are finalising discussions and will reach a binding memorandum of understanding in the coming weeks, the two companies said in a joint statement.

FCA’s Chairman John Elkann will chair the combined group, while Peugeot’s Chief Executive Carlos Tavares will be the new CEO.

The deal comes at a time when car makers are grappling with a global downturn in demand and looking to develop technologically advanced, cleaner car models to meet ever more stringent anti-pollution rules.

The merger, once completed, is expected to generate 3.7 billion euros ($4.1 billion) in annual synergies, without any plant closures, they said.

Via Reuters

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