A new merger could see the light of day. Italian-American carmakers Fiat Chrysler and French PSA are discussing a merger of equals, which would create a business valued at nearly $ 50 billion, said Tuesday, October 29 a source close to the record. Other options are also on the table, added this source on condition of anonymity. Carlos Tavares, managing director of PSA, would become the boss of the new company, while John Elkann, chairman of the board of Fiat Chrysler, would hold the same position in the new group.
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Fiat-Chrysler had been in talks in the spring with Renault, but negotiations had been abruptly halted in early June. Carlos Tavares had said a few weeks earlier "open to any opportunity that may arise", even if no discussion was then underway. "Everything is open, if we make money, we can dream of everything," he said in March at the Geneva Motor Show, when press articles were already throwing him into the arms of the Italian-American group.
110 billion turnover for FCA
PSA had a turnover of 74 billion euros and FCA of 110 billion last year. On the stock market, the French group weighs more, with a capitalization of 22 billion euros against 18 billion for the Italian-American. The union of the two groups would include the Alfa Romeo, Chrysler, Citroën, Dodge, DS, Jeep, Lancia, Maserati, Opel, Peugeot and Vauxhall brands.
"Both the FCA group and PSA need an alliance" and "this is not the first time that Elkann and Tavares are talking," said Tuesday evening the general secretary of the union Fim-Cisl, Marco Bentivogli, with the Italian agency AGI. "Whatever the alliance, it must help grow in the Asian markets, find technologies and resources for the transition to electricity," he added. In New York, the FCA share jumped 7.14% to 14.18 dollars around 19 h 45 GMT.
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