They expect to complete the merger within the next month.
The tie-up between PSA Group, and Fiat Chrysler Automobiles may be completed earlier than anticipated. Bloomberg reports the automakers want to close the deal as soon as possible. They may do so before January’s end. It would be possible to complete the merger within the timeframe. The two announced their merger late in 2019 and set a tentative Q1 2021 deadline for the completion of the deal.
According to people familiar with the matter, disruptions in the automotive industry, possibly referring to the coronavirus panademic have made it more urgent to complete the paperwork. According to Bloomberg the deal should be approved by the European antitrust authorities before the end of this year. Both companies will meet on January 4 to seek shareholder approval, regardless of whether approval is granted at a later date.
The merger will result in Stellantis being the fourth largest company in the world. It will also bring together 13 automotive brands under one roof. It may not last for 13 brands. Rumours circulate that models and brands could be cut as both automakers seek to reduce costs. This could mean that Lancia and Chrysler, two struggling brands, may be dissolved. China is another issue that could force both brands to rejigger the lineups. Both have struggled in recent times.
PSA Group was listed as the acquirer in the deal. This gives the company six out of the 11 Stellantis Board seats. Carlos Tavares, PSA Group CEO, will also be leading the new company. There were questions about Mike Manley, FCA CEO,’s role in the new automaker. Rumours circulated that he might be selected to lead Ferrari after the CEO of the company unexpectedly resigned. Automotive News today reported that Manley would be leading the Stellantis’ North- and South American operations. He will not hold a seat on its board.