FCA to pay 5.5 billion euro dividend, PSA to spin off Faurecia stake in proposed tie-up plan – sources
Wed Oct 30 2019
Lucy Harlow (3259 articles)

FCA to pay 5.5 billion euro dividend, PSA to spin off Faurecia stake in proposed tie-up plan – sources

 Fiat Chrysler (FCHA.MI) will pay its shareholders a 5.5 billion euro special dividend under a proposed tie-up scheme with French rival Peugeot (PEUP.PA), two sources close to the matter said on Wednesday.

The proposed deal also envisages that Peugeot will spin off its 46% stake in car part Faurecia (EPED.PA), worth around 3 billion euros, the sources said.

The combined group would have an 11-strong board, with six members coming from Peugeot including Chief Executive Carlos Tavares, and five from FCA including Chairman John Elkann, according to the draft plan.

Under the plan, whose terms are still tentative, FCA will also spin off its automation unit Comau, worth 250 million euros, the sources added.

FCA declined to comment, Peugeot owner PSA could not be immediately reached for comment.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe