Fca-Peugeot, green light for the merger. The fourth automotive manufacturer in the world is born

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Even if the official communication is still missing, expected for tomorrow before the opening of the markets, from the PSA board the unanimous green light has arrived to the binding memorandum of understanding that will start the merger process with FCA and that will lead to the birth of the fourth builder automotive in the world. The FCA board met in the evening to give its authorization to the operation.

According to the contents of the official communications released on October 31 last, the joint aggregation plan envisages that the transaction will be carried out in the form of a merger under a Dutch parent company with a balanced governance structure between the shareholders and a majority of independent directors. The board of directors will be composed of 11 members: 5 members appointed by FCA (including John Elkann as chairman) and 5 by Psa (including the senior independent Director and vice president). Carlos Tavares will be the CEO, as well as a member of the board of directors, for an initial term of five years.

The new parent company will be listed in Paris, Milan and New York. Before the completion of the business combination, Fca is expected to distribute a special dividend of 5.5 billion to its shareholders, as well as its stake in Comau.