This archive report was first published on 19 December 2019.
On December 19, 2019, Fiat Chrysler Automobiles (FCA) and Peugeot announced a historic 50-50 share merger, creating a company worth approximately $50 billion (KSh5 trillion). This deal will unite iconic brands such as Fiat, Jeep, Dodge, Ram, and Maserati with the likes of Peugeot, Opel, and DS.
The merger's primary objective is to reduce costs by $4.1 billion annually, without closing factories. According to the companies, they expect to achieve this goal by cutting product-related expenses by 40%, purchasing costs by 40%, and other areas such as marketing, IT, and logistics by 20%.
As reported by Reuters, the deal is expected to close within the next 12 to 15 months, after which the companies will introduce a new name. Additionally, China's Dongfeng Motor Group has announced plans to trim its 12.2% stake in PSA by selling 30.7 million shares to the French firm, resulting in a 680 million euros sale and a 4.5% stake in the merged group.
