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Carlos Tavares will head up Stellantis |
The merger between PSA and FCA to create ‘Stellantis’ has been approved by PSA and FCA shareholders. More than 99% of respective shareholders voted in favour of the transaction.
In a statement, the companies said that they expect to complete the combination on January 16, 2021. Stellantis’ common shares will begin trading on the Euronext in Paris and on Mercato Telematico Azionario in Milan on Monday, January 18, 2021, and on the New York Stock Exchange on Tuesday, January 19, 2021.
The new automaker group will be called Stellantis and will bring familiar brands such as Peugeot, Citroen, Fiat, Dodge, Jeep, Opel (and Vauxhall in the UK), Alfa Romeo and Maserati under the same leadership. The merger will reduce costs for both groups thanks to platform and component sharing, and joint R&D expenditure.
The EU had competition concerns centred on the two companies’ dominant position in the European light commercial vehicle market, but approved the merger in December. Peugeot agreed to extend an existing cooperation deal with Toyota that should keep the van market open, while repair and maintenance services need to be accessible to competitors after the merger goes through.
When it is completed, the merger will create the 3rd largest global car company by revenues and 4th largest by volume. However, analysts say there is a lot of work ahead to unlock synergies, rationalise operations and create value in the bigger corporation.
See also: EU approves FCA/PSA merger for Stellantis