Peugeot owner’s board approves merger with Fiat Chrysler

epa07503566 The Peugeot logo on a vehicle displayed during the International Motor Show Auto 2019 in Riga, Latvia, 13 April 2019. The automotive industry event is the biggest in the Baltic countries and runs from 12 to 14 April. EPA-EFE/TOMS KALNINS

Reading Time: < 1 minute

The board of France’s PSA, owner of Peugeot, has given chief executive Carlos Tavares approval to launch a full-scale merger with Fiat Chrysler Automobiles, which would create one of the world’s largest carmakers.

The FCA board is expected to follow suit, paving the way for the companies to pursue a deal that would create a combined group with a market value in excess of €44bn, say people familiar with the talks. An announcement could come as soon as Thursday morning.

The companies are discussing basing the combined group in the Netherlands, a neutral location, where FCA is domiciled. The merger talks come months after an aborted attempt by FCA to merge with PSA’s French rival Renault, with FCA blaming the French government for its decision to walk away last June.

 

Via Financial Times

%d bloggers like this: