Fiat Chrysler Automobiles, Peugeot Announce 50/50 Merger - Quick Facts

(RTTNews) - Fiat Chrysler Automobiles N.V. (FCAU) and Peugeot S.A. have agreed on a 50/50 merger of their businesses. At closing, Groupe PSA shareholders will receive 1.742 shares of the new combined company for each share of Groupe PSA, while FCA shareholders will have 1 share of the new combined company for each share of FCA. Completion of the transaction is expected to take place in 12-15 months. Carlos Tavares will be Chief Executive Officer for an initial term of five years. John Elkann will be appointed as Chairman.

The new group's Dutch-domiciled parent company will be listed on Euronext (Paris), the Borsa Italiana (Milan) and the New York Stock Exchange. The deal will result in approximately 3.7 billion euros of estimated annual run-rate synergies with no plant closures.

Before closing, FCA will distribute to its shareholders a special dividend of 5.5 billion euros. Groupe PSA will distribute to its shareholders its 46% stake in Faurecia. Each company plans to distribute a 1.1 billion euros ordinary dividend in 2020 related to fiscal 2019.