Shareholders from the PSA and FCA will convene in general meetings in early January with the aim of approving the car manufacturer’s merger as OEM super group Stellantis.
The French and Italian carmakers revealed the new Stellantis corporate back in July in what was described at the time as “a major step” towards the completion of the 50:50 merger first announced in December last year.
PSA and FCA said that they expected completion of the merger project in the first quarter of 2021, subject to customary closing conditions, including approval by both companies’ shareholders at their respective Extraordinary General Meetings and the satisfaction of antitrust and other regulatory requirements.
Reporting on the move at the time, Autocar magazine said that FCA shareholders, who are expecting a £5bn dividend once the merger is done, presented another potential hurdle following a £5.7bn government-approved bailout of the OEM.
Today’s statement on the progress of the merger said that the two OEMs had decided to convene the General Meetings of the respective shareholders of the two companies on January 4 in order to approve the merger.
It said that the meetings’ agenda and the draft resolutions that will be submitted to the vote of the shareholders of each company, as well as the terms of participation in these meetings, will be made public on the websites of the two groups on November 23.
If the merger is given the go-ahead, Stellantis will become the world’s fourth largest automobile manufacturer by volume, with a particular strength in light commercial vehicle (LCV) sales across the globe.
Combined, FCA and PSA sold 775,000 trucks and vans last year, equating to a 34% share of the market.
In November last year an AM ‘News Insight’ feature investigated the potential implications of the merger between PSA and FCA.
Discussion of the subject led to suggestions that FCA Group representation among the AM100’s top retail groups could grow as a period of franchise consolidation follows the manufacturer’s planned merger with PSA Group.