Groupe PSA and FCA announced their merger of equals

On December 18th, 2019, Peugeot S.A. (“Groupe PSA”) and Fiat Chrysler Automobiles N.V. (“FCA”) announced the signature of a binding Combination Agreement providing for a 50/50 merger of their businesses to create the 4th largest global automotive OEM by volume and 3rd largest by revenue.

This transaction, the largest in terms of revenues between a French and an Italian company and the history’s second largest in the automotive industry, will result in a combined entity with annual unit sales of 8.7 million vehicles, revenues of nearly €170 billion and recurring operating profit of over €11 billion.

Before closing of the merger between the two companies with market capitalizations in excess of €20 billion each, FCA will distribute to its shareholders a special dividend of €5.5 billion while Groupe PSA will distribute to its shareholders its 46% stake in Faurecia (valued at €3 billion, based on current share price).

The combined entity will benefit from a broad portfolio of well-established & iconic brands covering all key vehicle market segments (from luxury, premium, and mainstream passenger cars through to SUVs and trucks & light commercial vehicles) and balanced across geographies (46% of revenues derived from Europe and 43% from North America).

By bringing together the complementary strengths of the two companies, the combined entity will have the leadership, talents, resources and scale to address the challenge of shaping the new era of sustainable mobility.

The governance structure has been structured to strongly contribute to the combined company performance with John Elkann as Group Chairman, Carlos Tavares as Group CEO, with the strong support of long-term shareholders, EXOR N.V., Peugeot Family Group, Bpifrance who will be represented on the Board.

Messier Maris & Associés acted as lead financial advisor to PSA 

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