Officially: Fiat Chrysler and Peugeot will become one
On December 18, Fiat Chrysler Automobiles and PSA reached an agreement on a complete merger.
The PSA press service informs that the deal was approved to launch the 4th automobile conglomerate worldwide in terms of auto production, as well as the 3rd most considerable annual revenue. The new company was valued at about 50 billion US dollars. According to rumors, the full merger will end in the next 15-18 months.
The preliminary agreement requires both parties to establish a new management company with registration in New York, the Italian Stock Exchange, and Euronext. The board of directors will include 11 members: 5 from the FCA and PSA, as well as one leader.
The chairman of the governing body is the current director of Peugeot-Citroen Carlos Tavares. FCA Leader is Mike Manley, CEO of Fiat Chrysler. Companies will be combined with a 50:50 stake.