FCA, Groupe PSA Advance Towards Merger To Create Stellantis; Agree On Faurecia Stake Sale
(RTTNews) - Fiat Chrysler Automobiles NV (FCAU) and Peugeot S.A. or Groupe PSA (PEUGF.PK), who have agreed on a 50/50 merger of their businesses to create Stellantis, Wednesday said they continue to advance towards the completion of their proposed combination.
On Tuesday, the companies' Boards signed the cross-border merger terms that will apply to the combination, which is expected to be completed by the end of the first quarter 2021, subject to the customary conditions.
Both Boards also agreed to permit Groupe PSA to sell up to approximately 7 percent of Faurecia's stake prior to the completion of the merger and to take certain other steps. These would ensure that Stellantis will not acquire control of Faurecia, consistent with the terms of the original Combination Agreement.
The planned sale of stake is expected to facilitate the securing of the necessary regulatory approvals in relation to the merger.
The cash proceeds from the stake sale would be distributed to the Stellantis shareholders along with the distribution in kind of the remaining stake in Faurecia, as already announced on September 14.
The distribution will be promptly after the completion of the merger and subject to approval by the Stellantis Board and shareholders.
Both FCA and Groupe PSA also acknowledged the effective management of the Covid-19 crisis by Faurecia, and the upward revision of 2020 guidance and confirmation of all targets for 2022 during Q3 sales presentation.
Following the combination, Stellantis would be the world's 4th largest global automotive OEM by volume.