Groupe PSA and FCA agree to merge

New entity will have the leadership, resources and scale to be at the forefront of a new era of sustainable mobility

Metadata
Provider: 
GlobeNewswire, Inc.GlobeNewswire, Inc.
Retrieved on: 
Wednesday, December 18, 2019
Information
Tags: 
Companies, Agnelli family, Business, Exor, John Elkann, Peugeot, Elkann, Bpifrance, Leverage, Economy of Europe
Geotags: 
London, , GB
Organisation: 
FIAT CHRYSLER AUTOMOBILES N.V.
Summary
Key Points: 
  • New entity will have the leadership, resources and scale to be at the forefront of a new era of sustainable mobility
    Creates a diversified business with among the highest margins in its core markets of Europe, North America and Latin America and the opportunity to reshape the strategy in other regions
    Combined company will leverage investment efficiency across a larger scale to develop innovative mobility solutions and cutting edge technologies in new energy vehicles, autonomous driving and connectivity
    Excellent working relationship between the two management teams, which share successful track records in turnarounds, value creation and successful OEM combinations
    Strong governance structure to underpin combined company performance with John Elkann as Group Chairman and Carlos Tavares as Group CEO, with a majority of independent directors2
    Strong support of long-term shareholders (EXOR N.V., Peugeot Family Group, Bpifrance) who will be represented on the Board



Groupe PSA and FCA agree to merge

New entity will have the leadership, resources and scale to be at the forefront of a new era of sustainable mobility

  • Combines companies’ extensive and growing capabilities to address the challenge of shaping the new era of sustainable mobility
  • Combined company will be the 4th largest global OEM by volume and 3rd largest by revenue with annual sales of 8.7 million units and combined revenues of nearly €170 billion1
  • Creates a diversified business with among the highest margins in its core markets of Europe, North America and Latin America and the opportunity to reshape the strategy in other regions
  • Merger will deliver approximately €3.7 billion estimated annual run-rate synergies with no plant closures resulting from the transaction – synergies are expected to be net cash flow positive from year 1
  • Strong combined balance sheet and high level of liquidity provide financial flexibility with an investment grade credit rating expected
  • Combined company will leverage investment efficiency across a larger scale to develop innovative mobility solutions and cutting edge technologies in new energy vehicles, autonomous driving and connectivity
  • Broad portfolio of well-established iconic brands offering best-in-class products covering key vehicle market segments and delivering higher customer satisfaction
  • Excellent working relationship between the two management teams, which share successful track records in turnarounds, value creation and successful OEM combinations
  • Strong governance structure to underpin combined company performance with John Elkann as Group Chairman and Carlos Tavares as Group CEO, with a majority of independent directors2
  • Strong support of long-term shareholders (EXOR N.V., Peugeot Family Group, Bpifrance) who will be represented on the Board



1Represents FCA Net Revenues, excluding Magneti Marelli, and Groupe PSA Revenue excluding Faurecia Revenue to Third Parties

2 In compliance with the Dutch corporate governance code


Attachment

Primary Logo
Copyright: 
2019 GlobeNewswire, Inc.. All Rights Reserved.