Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Fiat-Chrysler (FCA) and PSA Peugeot took the penultimate step towards finalizing their merger on Monday after shareholders of both the companies voted in favor of it.


The merged entity, called Stellantis, will become the fourth-largest car producer in the world. Both companies must now launch the shares of the new entity to finalize the merger, according to media reports.


Stellantis will have the capacity to produce 8.7 million cars annually and create €5bn in savings, more than €3.7bn estimated when the process began in December 2019, reports indicated. 


The bulk of the savings, 40pc, are likely from combining the engine and transmissions platforms of the two companies, according to Mike Manley, chief executive officer (CEO), FCA, who will take over the North American operations of the merged entity. He added that another 35pc of the savings will occur through joint purchases and 7pc through sales.


Under the terms of the merger, Carlos Tavares, CEO, PSA Peugeot will take over as the CEO of Stellantis while John Elkann, chairman, FCA will stay on as chairman of the new entity.

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