FCA-PSA merger to reward long-time shareholders

Milan / London (Reuters)-The merger of Fiat Chrysler and Peugeot maker PSA includes a loyalty scheme to reward long-term investors and prevent future takeover attempts. This is a prospectus for a planned partnership show.

Italian American carMaker Fiat Chrysler (FCA) and France’s PSA will integrate brands such as Fiat, Jeep, Dodge, Lamb and Maserati with Peugeot, Opel, Citroen and DS in a $ 38 billion all-stock transaction in December. Agreed to.

The two companies said in a prospectus that Stellantis shareholder could receive special voting rights in addition to each common stock for at least three years so that the merged group would be known.

They added that such a move could make management changes and attempts to acquire Stellantis more difficult. The tax effects of loyalty schemes are uncertain, the two companies said.

Stellantis has a Dutch-registered parent company and its shares are listed in Paris, Milan and New York.

The loyalty scheme is common to Dutch companies, especially during the Ferrari spin-off, already used by Exor, the holding company of the Agnelli family in Italy and the controlling shareholder of FCA, and a grip on Exor’s luxury sports. Is increasing car Maker.

PSA CEO carlos Tavares operates Stellantis and will receive a € 1.7 million ($ 2.02 million) bonus upon completion of the merger.

FCA CEO Mike Manley will receive “awards worth about five times the annual base salary” and cash holdings after the merger if certain conditions are met.

The two companies said they have agreed to consider the possibility of a € 1 billion distribution to shareholders, either through a pre-merger equal dividend or by a subsequent distribution by Stellantis.

PSA and FCA have submitted merger plans to antitrust authorities in 21 countries and the European Union. To date, it has received approval from 15 countries, with preliminary approval from Brazil, the final of next week.

The EU is also expected to approve the merger, sources said.

FCA-PSA merger to reward long-time shareholders

Source link FCA-PSA merger to reward long-time shareholders

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