Boards of Fiat Chrysler, Peugeot owner PSA, sign off on merger - sources
By Gianluca Semeraro and Giulio Piovaccari MILAN (Reuters) - The boards of French carmaker PSA , the owner of Peugeot, and Fiat Chrysler (FCA) in separate meetings on Tuesday approved a binding agreement for a $50 billion merger, sources said. The two mid-sized carmakers announced plans six weeks ago for a tie-up to create the world's No
By Gianluca Semeraro and Giulio Piovaccari
MILAN (Reuters) - The boards of French carmaker PSA
The two mid-sized carmakers announced plans six weeks ago for a tie-up to create the world's No. 4 carmaker and reshape the global industry. A merger is seen helping them deal with big challenges in the industry, including a global downturn in demand and the need to develop costly cleaner cars to meet looming anti-pollution rules.
Both companies declined to comment.
A source close to FCA had said earlier the two companies could formally announce the agreement early on Wednesday, followed by a conference call to explain further details later in the day.
China's Dongfeng Motor Group Co Ltd <0489.HK>, which now has a 12.2% equity stake in PSA, will have a reduced stake of around 4.5% in the merged group, two sources said, in a move that could help make regulatory approval easier.
According to the deal approved by PSA's board on Tuesday, FCA's robot unit, Comau, will remain within the combined group rather than be spun off as was originally planned in October, the sources said.
The new group will evaluate how to extract value from Comau.
Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said.
FCA and PSA are expected to finalise a deal by the end of 2020 to create a group with 8.7 million annual vehicle sales, a source said.
That would put it fourth globally behind Volkswagen AG
FCA would gain access to PSA's more modern vehicle platforms, helping it meet tough new emissions rules, while Europe-focused PSA would benefit from FCA's profitable U.S. business featuring brands such as Ram and Jeep.
However, the deal could still face close regulatory scrutiny, while governments in Rome, Paris and unions are all likely to be wary about potential job losses from a combined workforce of around 400,000.
PSA's Carlos Tavares will be chief executive and FCA's John Elkann - the scion of Italy's Agnelli family, which controls FCA through their holding company Exor
The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles.
(Reporting by Gianluca Semeraro and Giulio Piovaccari in Milan; Editing by Peter Henderson, Keith Weir and Matthew Lewis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
VATICAN CITY (Reuters) - Pope Francis said on Saturday he planned to be vaccinated against COVID-19 as early as next week and urged everyone to get a shot, to protect not only their own lives but those of others.
U.S. Senator urges mobile, social media providers to keep Capitol rioters' data as man seen seizing Speaker's lectern arrested
By Rich McKay (Reuters) - A man photographed carrying off the Speaker's lectern during the Capitol Hill riots was arrested late Friday, while a top Democratic lawmaker on Saturday called on mobile carriers to preserve social media content related to the riots. Dozens of people have been charged following the storming of the Capitol on Wednesday, with the FBI asking the public for help identifying participants, given the proliferation of images of the riots on the internet.
By Sarah Marsh HAVANA (Reuters) - Communist-run Cuba said late on Friday it had signed an accord with Iran to transfer the technology for its most advanced coronavirus vaccine candidate and carry out last-stage clinical trials of the shot in the Islamic Republic. The allies are both under fierce U.S