EU: Fiat Chrysler and Peugeot Agree To $4B Merger

Fiat Chrysler and Peugeot maker PSA Group of France have agreed on the terms of a merger that would create the world’s fourth-largest auto maker by volume with a market value of more than $48.4 billion, said people familiar with the situation.

By negotiating the deal, Mr. Elkann is acting on a lesson passed on from the Italian-American car maker’s longtime Chief Executive Sergio Marchionne, who died last year: Merge and grow, or fade into irrelevance.

Five months after a failed merger attempt with Renault SA, Mr. Elkann, the U.S.-born heir of the Agnelli dynasty that founded Fiat, is once more front and center after personally negotiating with Mr. Tavares, people familiar with the situation said. 

Fiat Chrysler and Peugeot had already discussed a potential merger earlier this year, and many of the specifics were hashed out at the time, according to people familiar with those discussions. Those talks were shelved in May when Fiat Chrysler sought a deal with Renault instead. But that deal fell through at the 11th hour after Mr. Elkann failed to get the full backing of the French government and Renault’s alliance partner Nissan Motor.

Full Content: Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.