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Fiat Chrysler, PSA merger to include loyalty scheme - prospectus

Published 20/11/2020, 09:03
Updated 20/11/2020, 09:05
© Reuters. FILE PHOTO: Logo of French car manufacturer Peugeot is seen behind a SUV 3008 Hybrid4 car displayed in Zurich

MILAN (Reuters) - The merger between Fiat Chrysler (MI:FCHA) and French rival PSA (PA:PEUP) will include a loyalty share scheme to reward long-term investors in the new group and help prevent future takeover attempts, the prospectus for the planned tie-up showed.

In December, Italian-American car maker Fiat Chrysler (FCA) and PSA agreed to combine in a $38 billion all-share deal, uniting brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot , Opel, Citroen and DS.

The companies said in the prospectus that each may terminate the tie-up agreement if the merger were not completed by June 30, 2021 due to a failure to obtain the necessary regulatory approvals.

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