© vladek dreamstime.com General | December 18, 2019
Groupe PSA and FCA agree to merge
Fiat Chrysler Automobiles and Peugeot S.A. have signed a binding Combination Agreement providing for a 50/50 merger of their businesses to create the fourth largest automotive OEM by volume and third largest by revenue.
The combined company will have annual unit sales of 8.7 million vehicles, with revenues of nearly EUR 170 billion, recurring operating profit of over EUR 11 billion and an operating profit margin of 6.6%. The combined balance sheet provides significant financial flexibility and ample headroom both to execute strategic plans and invest in new technologies throughout the cycle, a press release reads. The companies says that the synergies between the companies will enable combined business to invest significantly in the technologies and services that will shape mobility in the future while meeting the challenging global CO2 regulatory requirements. “With an already strong global R&D footprint, the combined entity will have a robust platform to foster innovation and further drive development of transformational capabilities in new energy vehicles, sustainable mobility, autonomous driving and connectivity,” the release reads.