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Fiat Chrysler (FCA) and Peugeot Citroën (PSA) announced on Monday that they had changed the terms of their mega-merger due to the commercial disruption caused by Covid-19, AFP reports.FCA has agreed to reduce the exceptional dividend to be distributed to its shareholders to 2.9 billion euros ($ 3.4 billion), from 5.5 billion euros ($ 6.5 billion) previously, while PSA will distribute its 46% stake in French automotive supplier Faurecia to all shareholders. of the new company, rather than to its shareholders as previously agreed.

The decision was made to “take into account the liquidity impact of the Covid-19 health crisis on the automotive industry,” the companies said in a joint press release, while “preserving the initial balance of the merger ”which should be completed. by the end of the first quarter of 2021.

Fiat Chrysler (FCA) and Peugeot Citroën (PSA) announced on September 14, 12020 that they had changed the terms of their mega-merger in light of the business disruption caused by Covid-19. Photograph: Marco Bertorello / AFP / Getty Images

They were approved “unanimously” by the boards of directors of the two companies “with the strong support of their reference shareholders”, declared FCA and PSA.

The merger, announced at the end of October, will create Stellantis, set to become the world’s fourth largest automaker in terms of volume and third in terms of sales.

The merged company unites brands such as Peugeot, Citroën, Fiat, Chrysler, Jeep, Alfa Romeo and Maserati into a global giant, each of which will continue under its own brand.


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