Fiat Chrysler confirm merger negotiations with PSA
Both companies negotiate a merger that could result in a company valued at more than $ 50 billion
As reported in Mars by the Wall Street Journal, the Italian-American automobile group Fiat Chrysler Automobiles (FCA) and the French car manufacturer PSA, owner of brands such as Peugeot, Citroën and Opel have confirmed their marketing talks to work together in the promotion of a company that is presumed to be valued at more than 50,000 million dollars.
The idea of both companies to expand their services together took years. However, the resurgence was not easy. After this new project there are several failures that to date have not become limiting for FCA to ally with a partner in a fusion. The intention is to follow the style of the legendary Sergio Marchionne to grow in the market to cut production costs.
The death of Marchione last year, who led the merger of Chrysler Group with the Italian group Fiat during its reorganization in 2014, did not limit the company’s expansion ambitions and for this reason Fiat Chrysler targeted the industry French PSA who after a failed attempt in mid-June denied the yes to start negotiations with the Renault-Nissan today both companies concentrate to work for the benefit of the automotive market.
The negotiations by PSA would be led by its president and chief executive Carlos Tavares, according to The Wall Street Journal. This 61-year-old Portuguese, who was also a Renault executive during the controversial presidency of Carlos Ghosn, could become the CEO of the hypothetical automobile titan, while tycoon John Elkann, owner of FCA, would be its president, according to a close source to the negotiations and mentioned by the Financial Times.
K.Villarroel
Source: elpais
