Fiat Chrysler and PSA change merger terms due to epidemic

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.