Fiat Chrysler and PSA change merger terms due to epidemic

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FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook

Fiat Chrysler (FCA) and Peugeot Citroen (PSA) announced on Monday, that the company has revised the terms of its mega-merger in view of business disruptions caused by corona. FCA 5.5 billion The move has been taken to reduce the loss incurred extraordinarily since it distributed EUR 2.9 billion ($ 3.4 billion) to its shareholders compared to the euro ($ 6.5 billion).

It is about to distribute its 46 percent stake in PSA French automotive equipment manufacturer Furesia to all shareholders. In which its shareholders as a new company have agreed to take such steps. If we talk about the automotive industry, this decision was taken keeping in mind the impact on the Corona health crisis.

Further, it has been stated by FCA and PSA that this has been accomplished unanimously by the Board of Directors of both the companies with the strong support of their shareholders. In this tie-up, at the end of October, it was announced that it had reached the fourth largest vehicle manufacturer in the world in terms of volume and number three in terms of sales.

Jointly, brands such as the company Peugeot, Citroen, Fiat, Chrysler, Jeep, Alfa Romeo and Maserati have been united globally but this has raised doubts in the balance of the merger in recent months. In which the two companies announced in May that they planned as part of a merger due to the coronavirus decline in which a dividend payment of 1.1 billion euros ($ 1.3 billion) was to be waived.

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