Car companies Fiat Chrysler Automobiles (FCA) and PSA Group They culminated their merger process so as of this Saturday they officially adopted the new name Stellantis, which will become the fourth largest automobile consortium in the world.
After more than a year of negotiations, the merger was concluded after the two companies announced at the end of 2019 a possible combination of the companies to create a giant of the sector with a joint turnover of about 170.000 million euros a year.
Specifically, PSA will provide the group with brands such as Peugeot , Citroën, DS Automobiles, Opel y Vauxhall, while FCA will join Fiat, Chrysler, Jeep, RAM, Dodge, Alfa Romeo, Maserati, spear, Abarth, Mopar y SRT and those of components Comau y Teksid. In total, more than 15 signatures they will come under the same umbrella.
THE MERGER PROCESS
All this after last December the European Commission gave the go-ahead to the merger, after initiating an investigation into whether the transaction reduced competition in the van segment.
The merger was subject to the fulfillment of a series of conditions to which both groups have agreed to resolve the doubts of the Community authorities about the possible impact of the operation on competition in the single market. Days later, the boards of directors of PSA and FCA finally approved the merger with more than 99% of the votes cast by shareholders in favor.
"After the approval of the shareholders and the authorization of the authorities, in particular the European Commission and the European Central Bank, from FCA and PSA Group we will complete the merger on January 16", indicated the manufacturers, so Stellantis shares will start trading in Milan and Paris on January 18, while they will go on the New York Stock Exchange on January 19.
THIS IS HOW THE STELLANTIS BOARD OF DIRECTORS IS FORMED
Stellantis will have a new board of directors that will consist of 11 members and will be chaired by the until now president of FCA, John Elkann, who will have number two as vice president to Robert Peugeot. Also Carlos Tavares will be the CEO of the company.
Likewise, Henri de Castries He will be the new independent director of Stellantis, after holding different positions of responsibility in companies such as AXA, Nestlé or the French Ministry of Finance.
In addition, the group resulting from the merger will have up to seven non-executive directors on its board of directors: Andrea Agnelli, Fiona Clare Cicconi, Nicolas Dufourcq, Ann Frances, Wan Ling Martello, Jacques de Saint-Exupéry y Kevin scott.
In this way, the council will be made up of eight men and only three women, five appointed by FCA and another five by PSA, in addition to Tavares.
Stallantis arrives in a context of global crisis caused by the coronavirus pandemic, which caused vehicle sales around the world to decline significantly in the last 12 months.
In the case of the PSA Group, its registrations fell by 27,8% last year, to 2,51 million units, while FCA has not yet published its year-end data but as of September its sales had dropped by 30% , with 2,26 million units.