Fiat Chrysler, Peugeot to create Dollars 50 billion auto giant?

Peugeot 508 Hybrid

Analysts believe that this could ring some alarm bells with the regulators in the U.S. who would be overlooking the merger, where the Committee on Foreign Investment in the United States has been keeping a close watch on all Chinese-related deal making involving USA companies and technology. Therefore, the emergence of the second-biggest vehicle manufacturer in the world was averted. PSA's board is holding an extraordinary meeting later Wednesday, said the people who asked not to be named because the information isn't public.

Adjusting for the differences in market values and a 5.5 billion-euro dividend being paid out to Fiat Chrysler shareholders, "achieving a 50/50 shareholding suggests PSA is paying a 32% premium to assume control of FCA", Jefferies analyst Philippe Houchois said in a note. Both have strong shareholder participation by the founding families - the Peugeots in France and the heirs to the Agnelli family in Italy, represented by Elkann.

Although Chrysler is still perceived as an American vehicle brand with popular models like the Dodge Caravan, Dodge Ram trucks and Jeep 4X4 models, the company has been wholly-owned by Fiat since 2014.

Meanwhile, the deal would give PSA a stronger position in north America, where FCA makes the vast bulk of its profits.

As the auto industry is racing to transition from internal combustion engines to low-emission electric vehicles and the industry braces for an autonomous driving environment, there is a sense in scaling up the size of industrial conglomerates, creating scope for a bigger investment in research and development.

FCA aims to jump into the electric auto market and the production of self-driving cars and sees PSA's expertise on the development of technologies as an advantage in the field.

Mario Kart Tour drives 124 million downloads in first month
Shell out for everything and you'll be spending the same (or more) than you would for a console version of Mario Kart . Mario World was downloaded 7.4 million times and Dragalia Lost hit 1.6 million downloads - all in the first month.

PSA's Carlos Tavares would be CEO and Fiat Chrysler's (FCA) John Elkann chairman.

Thursday's statement from the PSA Group and Fiat Chrysler suggests that the French government, which owns around 15% of PSA, supports the deal.

Potential FCA partners included Volkswagen AG, Hyundai, while talks with Renault were called off earlier this year. However, the Italian-American carmaker instead pursued a deal with Renault. The deal appeared to be moving forward quickly, at least until Renault's own Japanese affiliate, Nissan, began raising objections.

Groupe PSA, which includes Peugeot, Citroen, DS, Opel, and Vauxhall, has joined forces with Italian-American automotive giant, Fiat Chrysler Automobiles (FCA). Fiat Chrysler "is not facing very good times, and it seems it's getting worse as the time passes", he added. The only exception is that the Peugeots could increase their stake by up to 2.5% during the first three years by buying shares from Dongfeng and the French investment bank. "The focus will be Europe", he said.

Fiat Chrysler shares are down 8.5 percent this year while Peugeot has risen 33.3 percent.

Soon after, the recession hit in the US which led to an unpreceded government bailout of the USA auto industry, which led to US automakers Chrysler and General Motors to file for bankruptcy protection.

Related News:

  • Karl-Anthony Towns, Joel Embiid trade punches in epic brawl

    Karl-Anthony Towns, Joel Embiid trade punches in epic brawl

    Both players were assessed double technical fouls, and Embiid shadowboxed and pumped up the crowd on the way to the locker room. To put it simply, Embiid couldn't be symbolic of what it means to be a Sixer if he played in the Franklin costume.
    Dog wounded in Baghdadi raid back on duty

    Dog wounded in Baghdadi raid back on duty

    US President Donald Trump says a man viewed as the next leader of the Islamic State militant group is dead. Another video showed US Delta Force operators advancing on the compound across open ground.
    Bengals' Andy Dalton was looking to be traded before deadline

    Bengals' Andy Dalton was looking to be traded before deadline

    It's less a referendum on Dalton than an indication that the franchise is looking long term now that the season has slipped away. However, the first-year coach said it was time to see what Finley can do. "You wanted to win games with him".
  • Police fire tear gas at Hong Kong protesters with Halloween masks

    Police fire tear gas at Hong Kong protesters with Halloween masks

    It is the first time protesters have targeted the party district in five months of increasingly violent, anti-government unrest. In Thursday's statement , the Hong Kong government pinned the contraction on weak demand - both inside and outside the city.
    Nicki Minaj displays $1.1m wedding ring

    Nicki Minaj displays $1.1m wedding ring

    Nicki Minaj captioned a behind the scene photo, saying, "Behind the scenes w/The JOKER...coming soon - Happy HalloQueen". The case which held both the rings also had an adorable video with the couple's photos playing as soon as you opened it.
    Sony Reaches the 1 Million Milestone With PlayStation Now Subscribers

    Sony Reaches the 1 Million Milestone With PlayStation Now Subscribers

    If you want to keep up to date with the latest news regarding Disney + be sure to checkout our Everything You Need To Know Guide . The Information reports Sony approached FuboTV, another such service, as a potential buyer, but no dice.
  • Saban: Tua 'better than expected' after ankle surgery

    Saban: Tua 'better than expected' after ankle surgery

    No one expected it to be pretty when a struggling Arkansas team visited number one Alabama on Saturday, and, well it wasn't. The Razorbacks have failed to cover in four straight games on grass and in five of their last six conference games.
    'Behind Miranda Lambert's Wildcard' Short Film Coming Exclusively to Apple Music

    'Behind Miranda Lambert's Wildcard' Short Film Coming Exclusively to Apple Music

    With Brendan, I made it a point to keep it as private as I could for as long as I could". Lambert met McLoughlin nearly exactly a year ago when promoting a Pistol Annies record.
    Call of Duty: Modern Warfare Breaks Multiple Sales Records

    Call of Duty: Modern Warfare Breaks Multiple Sales Records

    Previous franchise entries, Call of Duty: Black Ops 4 and Call of Duty: WWII, reported $500 million three-day openings. We've got all the information available so far about how to get a watch in Modern Warfare , so read on for the details.
  • Kenyan Drake traded to Cardinals for conditional 2020 draft pick

    Kenyan Drake traded to Cardinals for conditional 2020 draft pick

    With Drake out of the picture, the Dolphins' top remaining running backs are Walton, Ballage, Myles Gaskin and Patrick Laird. However, he's been limited to just 47 carries for 174 yards this season and has yet to cross the end zone in 2019.
    HBO Max to Launch in May 2020, Start at $14.99/Month

    HBO Max to Launch in May 2020, Start at $14.99/Month

    Celebrities promoting HBO Max will list up their recommended TV Shows or movies that can be viewed from their profile. HBO, which invented high-end, subscription programming, is playing catch-up in the streaming era dominated by Netflix.
    US Consumer Confidence Drops in October

    US Consumer Confidence Drops in October

    The Conference Board's consumer confidence index slipped to 125.9 this month from a September reading of 126.3. The share of those who called jobs "hard to get" also rose - eight-tenths of a point to 11.8 percent.

Most liked

North Korea fires two projectiles, says South
On October 3, Kim's regime announced that it had successfully test-fired a new submarine-launched ballistic missile from the sea. The US and North Korea held working-level nuclear talks a few days later , but those concluded without an agreement.

Grenfell groups welcome report on ‘gravely inadequate’ fire brigade preparation
Firefighters stand in solidarity with the bereaved, survivors and residents and share their grief for the lives lost that night.

WWE To Decide 'Greatest Tag Team In The World' At Crown Jewel
The event is nearly here so keep checking back here as the card continues to plump up. The New Day (Kofi Kingston, Big E & Xavier Woods) vs.

AT&T says HBO Max streaming service to launch in May for $15
The corporate, in 2021, intends to suggest an ad-supported model of HBO Max , which additionally will likely be bundled with AT&T TV.

Nationals Top Astros in Game 7 to Win 1st World Series Title
He continued: "In this game, when we show up to spring training, we're not anxious about winning the Hank Aaron award or MVP". Taking that into account there is no other way to look at the 2019 season for the Astros than as one of failure.

Kamala Harris cuts staff, restructures campaign as funds begin to dwindle
Harris' consultants will also have their payments reduced and the campaign hopes to renegotiate other contracts to slash overhead. Harris plans to spend significant time in Iowa again in November, including over Thanksgiving, her campaign said.

B.C. to introduce legislation that would stop the time change
More than 223,000 people filled out the online survey aimed at finding out British Columbians thoughts on seasonal time changes. Daylight saving time is in effect from March to November. "We don't want to be out of sync with our neighbours", said Antweiler.

Fire on moving train kills 65 passengers in central Pakistan
About 130 people were killed in 2005 when a train rammed into another at a station in Sindh, and a third train hit the wreckage. The fire destroyed three of the train's carriages, including two economy class carriages and one business class carriage.

Tyson Fury Says He'd Want To Face Brock Lesnar Next In WWE
I just wish there were more facilities like that in boxing - to make young fighters become great professionals. Fury is now promoting his WWE debut, which will take place at WWE Crown Jewel in Saudi Arabia on Thursday.

Disney+ Releases Pixar Trailers for Forky Asks a Question and More
With its launch, Disney + is more likely to give tough completion to the leaders of the VOD platform- Netflix and Amazon Prime. They're part of Disney Pixar SparkShorts , an experimental initiative created to let Pixar employees tell personal stories.

Washington Post criticised, and lampooned, over Baghdadi headline
The Post's headline was quietly changed to refer to al-Baghdadi as the " extremist leader of Islamic State". Amusingly, their original headline appeared to describe al-Baghdadi as "terrorist-in-chief".

Russian Nuclear-Powered Submarine Test-Launches Ballistic Missile
Fired from the White Sea, the missile successfully reached its target on the Kamchatka Peninsula in Russia's Far East. It test-fired an ICBM missile as Russian Federation shows off its military strength in the Arctic region.

PSA Peugeot-Citroën Approves FCA Merger, FCA Decides Tonight
Both would have seats on the board of the new company, which would comprise six Peugeot appointees, including Mr. Combined, the two automakers sold about 5.4 million vehicles globally previous year .

Derby terminate captain Keogh's contract for 'gross misconduct'
Keogh was subsequently ruled out for the remainder of the Championship season after picking up an injury in the incident. Derby are now 16th in the Championship table, and face a home tie against Middlesbrough on Saturday (3pm).

Samsung ‘SpaceSelfie’ Satellite Crash-Lands in Michigan Couple’s Front Yard
The owners of the farm, old couple Nancy Welke and her husband Dan, were letting their horses out when the device crash-landed. A Samsung pseudo-satellite fell in the front yard of a woman's house in rural MI on the morning of October 26.