Groupe PSA and FCA agree to mergeNew entity will have the leadership, resources and scale to be at the forefront of a new era of sustainable mobilityCombines companies’ extensive and growing capabilities to address the challenge of shaping the new era of sustainable mobilityCombined company will be the 4th largest global OEM by volume and 3rd largest by revenue with annual sales of 8.7 million units and combined revenues of nearly €170 billion1Creates a diversified business with among the highest margins in its core markets of Europe, North America and Latin America and the opportunity to reshape the strategy in other regionsMerger will deliver approximately €3.7 billion estimated annual run-rate synergies with no plant closures resulting from the transaction – synergies are expected to be net cash flow positive from year 1Strong combined balance sheet and high level of liquidity provide financial flexibility with an investment grade credit rating expectedCombined company will leverage investment efficiency across a larger scale to develop innovative mobility solutions and cutting edge technologies in new energy vehicles, autonomous driving and connectivityBroad portfolio of well-established iconic brands offering best-in-class products covering key vehicle market segments and delivering higher customer satisfactionExcellent working relationship between the two management teams, which share successful track records in turnarounds, value creation and successful OEM combinationsStrong governance structure to underpin combined company performance with John Elkann as Group Chairman and Carlos Tavares as Group CEO, with a majority of independent directors2Strong support of long-term shareholders (EXOR N.V., Peugeot Family Group, Bpifrance) who will be represented on the Board1Represents FCA Net Revenues, excluding Magneti Marelli, and Groupe PSA Revenue excluding Faurecia Revenue to Third Parties2 In compliance with the Dutch corporate governance code
AttachmentGroupe PSA and FCA agree to merge
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