Bruno Le Maire, French Minister of Economy and Finance, and his Italian counterpart, Stefano Patuanelli, said in a joint statement that they “warmly welcome” the merger, which will create a “new European champion”.
“The two governments will also pay attention to Stilantis’ contribution to industrial employment in Italy and France,” they added.
Led the perceived intervention by the French government Fiat withdraws from merger talks with Renault In 2019.
Fiat and PSA have been hit hard by the pandemic. PSA vehicle sales fell 30 percent in the 11 months through November, while FCA sold 30 percent fewer cars and trucks in the nine months to September, the most recent reporting period.
The damage caused by the epidemic prompted companies to revise merger terms in September. The special dividend to Fiat Chrysler shareholders, which will be paid when the deal closes later in January, has been reduced to € 2.9 billion, or $ 3.6 billion, from € 5.5 billion. In return, Fiat Chrysler shareholders would receive a larger slice of potential future payments.
Alkan said the pandemic made the rationale for the merger “more convincing”.
Carlos Tavares, CEO of PSA, will hold the same title in the new entity. Mr. Elkann, a descendant of the Italian Agnelli family and descendant of the man who founded Fiat in 1899, is at the forefront of the position of chairman of the board. Mike Manley, CEO of Fiat Chrysler, will direct the operations of the combined US company.
“We are ready for this merger,” Mr. Tavares said during the PSA shareholder meeting, which took place online. He said the merger would allow companies to share the cost of developing electric cars and give PSA access to the US market while reducing its dependence on Europe.