Fiat, PSA to win EU approval for $38 billion merger
Reuters | Milan
The Daily Tribune - www.newsofbahrain.com
Fiat Chrysler and PSA are set to win EU approval for their $38 billion merger to create the world’s No.4 carmaker, people close to the matter said, as they strive to meet the industry’s dual challenges of funding cleaner vehicles and the global pandemic.
The green light from the European Commission would formalise the creation of Stellantis, a carmaking group that could tap hefty profits from selling Ram pickup trucks and Jeep SUVs to U.S. drivers to fund the expensive development of zero-emission vehicles for sale in Europe and China.
The all-share merger announced late last year would unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, and DS - while targeting annual cost cuts of 5 billion euros ($6 billion) without closing factories.
The Commission and Italian-American group Fiat Chrysler Automobiles (FCA) declined to comment. France’s PSA did not immediately respond to a request for comment.
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