- Aug 1, 2006
https://www.reuters.com/article/us-...peugeot-tie-up-how-does-it-work-idUSKBN1XA1BMFiat Chrysler, Peugeot tie-up - how does it work?
The following are some of the key elements of the deal:
** Fiat Chrysler Automobiles (FCA) and PSA aim to reach a binding agreement to create a $50 billion company in the coming weeks.
** The combined automaker would have annual sales of 8.7 million vehicles, total revenues of nearly 170 billion euros ($190 billion) and recurring operating profit of more than 11 billion euros, based on aggregated 2018 results.
** The new group would be domiciled in the Netherlands, with listings in Paris, Milan and New York.
** PSA Chief Executive Carlos Tavares would be the group’s CEO. FCA Chairman John Elkann would become chairman.
** The merged group would have 11 board members, six from Peugeot including Chief Executive Carlos Tavares, and five from FCA including Chairman John Elkann.
** The merger, once completed, is expected to generate 3.7 billion euros in annual synergies. The two groups say no plants would be closed.
** Prior to completion of the deal, FCA would pay its shareholders a 5.5 billion euro special dividend. It would also hand investors its shares in robot-making unit Comau, which will be spun-off.
** Also prior to completion, Peugeot would distribute its 46% stake in auto-parts maker Faurecia (EPED.PA) to its shareholders.
** Under the deal, major shareholders Exor (EXOR.MI), French state bank Bpifrance Participations and the Peugeot family would be subject to a three-year lock-up period. In that time, the Peugeot family would be allowed to increase its shareholding by up to 2.5% only by acquiring shares from Bpifrance Participations and China’s Dongfeng Motor Group (DFG).
** A seven-year standstill period following completion of the merger - when extraordinary operations affecting governance cannot be carried out - would apply to shareholders Exor, Bpifrance Participations, DFG and the Peugeot family.
** According to sources, FCA is being advised by Goldman Sachs and its independent board members by D’Angelin. PSA is being advised by Mediobanca’s Messier Maris & Associes unit and Morgan Stanley, with Perella working for its independent board member. Lazard is advising Exor.
** Exor, the holding company of the Agnelli family which controls FCA with a 29.2% stake, will become the new automaker’s single largest investor, with a 14.5% stake.
Ahem, you forget the most significant name of all, Lancia!
oh well, nothing of value was lost...
August 06, 2018Sergio told us there'd be days like this.
In his now legendary "Confessions of a Capital Junkie" presentation in 2015, the then-CEO of Fiat Chrysler warned that the industry was plowing too much of its capital in the quest for too-skimpy profits, wasting money on redundant technologies and shredding shareholder value in the process.
The risks, he argued, would only grow as manufacturers scrambled to meet emissions and safety regulations and keep pace in connectivity, electrification and autonomous technology.
https://www.bloomberg.com/news/arti...s-fiat-family-finds-heir-to-marchionne-legacyIn Carlos Tavares, Fiat Family Finds Heir to Marchionne Legacy
PSA, maker of the Peugeot brand, may not have been Elkann’s preferred partner -- another merger attempt with Renault SA fell through in June after demands by the French government proved insurmountable. But Tavares best fits the mold of Marchionne, a shrewd operator who passed away after a short illness in July 2018 at the age of 66.
Both men turned around businesses that from the outside looked beyond repair. Marchionne accomplished that feat with Fiat, before combining the storied Italian brand with Chrysler to gain a global footprint. Tavares revived Peugeot after it was saved from the brink. Two years ago, he managed a bold reversal when he took over Opel from General Motors Co. and successfully integrated the notoriously unprofitable asset.