Both companies’ shareholders overwhelmingly approved the merger on Monday, the automakers said.
Upon completion of the merger, the combined company will become the fourth largest automaker in the world, said Jeff Schuster, an analyst at LMC Automotive. Together, the companies are worth about $ 57 billion.
While Fiat Chrysler and PSA compete in Europe, PSA has virtually no presence in the United States, where Fiat Chrysler is the fourth largest automaker in terms of sales in the country. Both companies have struggled to compete in China’s fast-growing automotive market, however, said Schuster. The merger will not help immediately with that, he said, so it would remain a challenge for the new company.
Although the two companies compete with each other in Europe, their brands have slightly different market positions, said Schuster.
“And I think there is a [electric vehicle] PSA expertise does not have FCA, “he said,” so there is some nice synergy there. “
The creation of the new company will help free up resources as it shifts to electric and autonomous vehicle technologies, said Michelle Krebs, an analyst at Cox Automotive.
“The creation of Stellantis is simply a large-scale example of an underlying trend that we are seeing in the automotive business now, as all serious automakers face the monumental task of remodeling their operations with one eye in 2030, when EVs and autonomous technology will have changed from emerging to mainstream, “she said.
Actions of Stellantis will begin trading on the Paris and Milan stock exchanges on Monday, January 18, and on the New York Stock Exchange the following day.
The merger requires some final regulatory approvals, the companies said, including those from the European Union and the European Central Bank.