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12/21/2020, 12:12 PM (Source: TeleTrader)
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EU approves Fiat Chrysler, PSA Groupe $38B merger

The European Union conditionally approved on Monday the $38 billion merger between carmakers Fiat Chrysler and PSA Groupe. After the deal is finalized, the two companies will create the fourth auto manufacturer by volume in the world.

The newly formed company, in which both FCA and PSA will have a 50% stake, is going to be called Stellantis. The agreement is expected to be realized in the first quarter of 2021. At the same time, PSA will extend the small van deal with Toyota Motor Corp. in order to address EU competition concerns.

The auto industry was heavily impacted by the coronavirus pandemic, causing the stocks of major companies to sink last March. However, FCA successfully recovered from the crisis, prompting its shares to stand 6% higher compared to the start of the year.

Breaking the News / ND