Peugeot and Fiat Chrysler complete merger, form Stellantis

Andrew Cummings
January 20, 2021

As you know well, this merger represents 25 billion euros of value creation.

The completion of the mega-merger between Fiat Chrysler and Peugeot-maker PSA took place on Saturday (January 16).

Stellantis shares rose 2.5 per cent in Milan in early trading to 13.18 euros (15.91 USA dollars), recovering losses to Fiat Chrysler from Friday.

Announced last summer, the merger is nominally a 50/50 affair, though PSA has a slight advantage with six members on the board including CEO Carlos Tavares, who has been made CEO of Stellantis, versus the five of FCA.

"However, even excluding synergies, . we continue to view Stellantis as underappreciated on all metrics in comparison with its most direct peers", Bosio said in a note. However, it remains to be seen if any brands are dropped from the portfolio as the automaker makes the shift towards a new automotive era in which electrification will be the primary focus.

Stellantis, the carmaker forged from the merger of Fiat Chrysler and Peugeot-owner PSA, will give all its 14 brands a chance at success and keep all options on the table for revitalizing its struggling Chinese business, it top executive said on Tuesday.

The stock will debut in NY on Tuesday (January 19).

Shareholders of both companies overwhelmingly approved the deal for the new company, which will be called Stellantis.

Tavares said Stellantis' mantra is "great rather than big", and that he expects it to realize $6 billion in savings and $30 billion in added value as a result of the tie-up, which has created the world's fourth-largest automaker. The Paris-listed shares traded around the same level. FCA CEO Mike Manley will head Stellantis' American operations, while FCA Chairman John Elkann has been made chairman of Stellantis.

Stellantis will launch 10 new electrified vehicle models in 2021, he said, but he hedged on a broader push for electrification, especially in less-developed markets. The stock will debut in NY on Tuesday.

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