Fiat Chrysler & PSA reexamine terms of €50bn merger

Industry Europe | Sep 15, 2020 at 6:00 PM
  • Expected dividends to FCA shareholders have been slashed from €5.5 billion down to €2.9 billion so that money remains inside the newly formed company.
  • Analysts had predicted a likely change to the original agreement would be the proposed €5.5 billion dividend to FCA shareholders.
  • Cutting FCA’s payout alone does alter the merger ratio, so PSA is set to reset the balance by giving half of its shares in automotive components group Faurecia, of which PSA owns 46% – worth around €2.6 billion on Monday.