Merger and promise of dividends, even today Fca is trading

2019-10-31T09:03:56.719Z

Shortly before the opening of the stock exchanges, the joint statement between FCA and PSA in which the unanimity of the two boards is given an account to work towards a full aggregation of the respective businesses through a joint merger. In the statement the confirmation of yesterday's descriptions: a board of 11 members, 5 on each side, plus the managing director, who will be Carlos Tavares, current number one of Psa. The president will be John Elkann instead. Annual synergies are estimated at € 3.7 billion. For Fca shareholders, an extraordinary dividend of 5.5 billion euros is expected. Dividend promise that also today contributes to the FCA stock market (+ 9%). The holding company Exor was very good (+ 4.86%), while Peugeot fell by -8.52%. Falling for Renault, also down sharply yesterday: the company had been on the verge of merging with Fca in recent months. The effects of the marriage between Fca and Psa are also felt in part on European stock exchanges. Milan is positive, it goes better than other continent squares. Yesterday there was the announcement by Jerome Powell, the president of the Fed, the US central bank, of cutting interest rates. The cut was as expected of a quarter of a point. Since the beginning of the year it has been lowered by 0.75%, there should be no others in 2019. The response from Wall Street is good, with its main indices: + 0.33% for S&P 500 and for Nasdaq. This morning the wave also arrived in Asia, positive stock markets with the exception of Shanghai.