Thu, 31 Oct 2019 | MERGER
Fiat Chrysler Automobile (FCA) and Groupe PSA have confirmed plans to pursue a merger, creating a business that would have a combined revenue of nearly €170 billion.
Announcing the plans, the two groups said the merger followed "intensive discussions between the senior managements of the two companies" and that they intended to build a "world leader for a new era in sustainable mobility".
The new group will be owned 50 per cent by Groupe PSA shareholders and 50 per cent by FCA shareholders and will be the world’s fourth-largest original equipment manufacturer (OEM) by unit sales.
The group will have an 11 person board, with 6 members appointed by PSA, including its chief executive Carlos Tavares, and 5 members appointed by FCA.
Along with its €170 billion revenue, the group would have recurring operating profit of more than €11 billion and combined vehicle sales of 8.7 million, putting it ahead of General Motors and Hyundai-Kia in terms of sales.
FCA has 102 manufacturing facilities, 46 research and development centres and operates through dealers and distributors in over 135 countries. Its brands include Chrysler, Fiat and Jeep. France’s Groupe PSA is present in around 100 countries, with brands including Peugeot, Citreon and Vauxhall, which employs 3,000 people in the UK.
Groupe PSA chief executive Carlos Tavares said that "This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity.”
While FCA chief executive Mike Manley added: "I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company."
An opportunity exists to purchase the business and assets of a manufacturer of paper craft kits operating in the North of England. The company has been established since the late 1990’s and has a long history of selling its’ products through TV shopp...
Located in a commercial trade park in North Essex, this lucrative company manufactures specialist equipment for the health industry.
Offering one-stop design-to-installation and maintenance service of creative high impact signage for all applications.
19
|
Apr
|
US firm acquires Somerset employee management provider | BUSINESS SALE
An employee management services firm based in Somerset has b...
18
|
Apr
|
Education specialist makes second LDC-backed acquisition | BUSINESS SALE
Hybrid, an education media and marketing services firm, has ...
18
|
Apr
|
Administrators appointed to SPV behind £24m Bolton redevelopment | ADMINISTRATION
A special purpose vehicle (SPV) behind a £24 million r...
28
|
Apr
|
FCA warns banks not to pressure their business customers | BUSINESS NEWS
The Financial Conduct Authority (FCA) has today sent letters...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.