Shareholders of both companies overwhelmingly approved the merger on Monday, 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 US, where Fiat Chrysler is the fourth largest carmaker in terms of sales in the country. Both companies have struggled to compete in China’s fast-growing car market, however, Schuster said. The merger will not immediately help this, he said, so it remains a challenge for the new company.
While the two companies compete with each other in Europe, their brands have somewhat different market positions, Schuster said.
“It simply came to our notice then [electric vehicle] PSA’s expertise is that the FCA does not, “he said,” so there is a nice synergy there. “
The creation of the new company will help free up resources as they move toward 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 we now see in the automotive industry, as all serious carmakers face the monumental task of reshaping their operations with an eye to 2030, when EV and autonomous technology will change from emerging to mainstream, “she said.
Actions of Stellantis will begin trading on the stock markets in Paris and Milan on Monday, January 18 and on the New York Stock Exchange the next day.
The merger requires some final regulatory approvals, the companies said, including those of the European Union and the European Central Bank.