Fiat Chrysler, Peugeot Formally Agree to Merger
Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (PSA) have signed a binding Combination Agreement providing for a 50/50 merger of their businesses to create the 4th largest global automotive OEM by volume and 3rd largest by revenue.
The combined company will have annual unit sales of 8.7 million vehicles, with revenues of nearly $189 billion, recurring operating profit of over €12 billion and an operating profit margin of 6.6%, all on a simple aggregated basis of 2018 results. The combined balance sheet, the companies say, provides financial flexibility and headroom both to execute strategic plans and invest in new technologies throughout the cycle.
“This is a union of two companies with incredible brands and a skilled and dedicated workforce,” said FCA CEO Mike Manley. “Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait – they see challenges as opportunities to be embraced and the path to making us better at what we do.”
“Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services,” added PSA Chairman of the Managing Board, Carlos Tavares. “I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigor and enthusiasm.”