October 22, 2020

Automotive Giants Fiat Chrysler, PSA To Merge

By Stuart Burns

Original post

It is not often that the world’s largest carmakers engage in mergers and acquisitions among themselves.

Fiat Chrysler (NYSE:FCAU) and Renault Nissan (OTC:RNSDF) announced a $35-billion plan to merge back in May 2019. The merger would have created the third-biggest carmaker, behind Volkswagen (OTCPK:VWAGY) and Toyota (NYSE:TM).

But within 10 days of the announcement, FCA pulled out and it came to nothing.

Take two: Fiat Chrysler, PSA to merge

Now, still keen for a tie-up, FCA has announced it will merge with the French group PSA (OTCPK:PEUGF).

PSA is the owner of brands like Peugeot, Citroen, Vauxhall, and DS. The deal, valued at $50 billion, would form a 50/50 partnership with a turnover of some €170 billion ($200 billion) a year and annual production of some 8.7 million units.

As such, the deal would put them, again, third. By other measures, they would

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