Fiat completes Chrystler purchase
Fiat has just finished its purchase of Chrysler by acquiring the remaining stage for US$4.35 billion, thus making the traditionally US-owned brand a wholly-owned subsidiary of the Italian car maker.
The remaining 41.46 percent stake was held by a United Auto Workers-affiliated retiree healthcare trust, the deal from Fiat will be comprising of US$3.65 billion in cash – US$1.9 billion from Chrysler and US$1.75 billion from Fiat, with the remaining US$700 million to be paid in four equal annual instalments.
The acquisition – which was initially announced on January 1 – allows the Fiat and Chrysler Group CEO Sergio Marchionne to mix the resources of the two manufacturers unobstructed following a year and a half of disputed talks.
John Elkann – Fiat chairman – said that Marchionne will remain as CEO until at least the end of 2016, thus giving him enough time to manage the merger of the two entities.
The Fiat board is scheduled to meet on January 29 and is expected to finalize the terms of the merger, its corporate organization will be deciding on a new company name, where it will be headquartered as well as its main stock listing.
According to Marchionne’s estimates, Fiat-Chrysler combined makes up the world’s seventh-biggest car maker, seeling around 4.4 million vehicles globally in 2013.
General Motors sold 9.71 million units last year, Volkswagen 9.7 million and Toyota is still to release its 2013 sales figures, but they did take the title for best-selling brand in 2012 with a figure 9.75 million.
This purchase has been planned for a long time, Fiat starting its accumulation of Chrysler stock in June 2009, then increasing its stake to 53.5 percent in 2011.
Speaking at the Detroit auto show –Marchionne said that once the Chrysler merger is complete, Fiat will be open and willing to engange in other partnerships siwh manufacturers such as PSA Peugeot Citroen and Suzuki Motor Corp.
