- POSTED: 26 Jan 2014 05:55
The newly combined Fiat-Chrysler automaker will seek a fiscal domicile in Britain and a stock listing on a New York exchange, The Wall Street Journal reported Saturday.
NEW YORK: The newly combined Fiat-Chrysler automaker will seek a fiscal domicile in Britain and a stock listing on a New York exchange, The Wall Street Journal reported Saturday.
Fiat chief executive Sergio Marchionne, who has overseen the company's gradual purchase of Chrysler since 2009, is set to make the proposal to the board next week, people familiar with the plans told the Journal.
The Italian automaker completed its acquisition of Chrysler this week in a US$4.35 billion transaction after a five-year merger that creates a new global car giant.
The deal involved buying the remaining 41.46 per cent stake in Chrysler not held by Fiat from Veba, a fund controlled by the US autoworkers' union UAW.
Fiat and Chrysler together make the world's seventh biggest auto group and the name of the merged company and the choice of location for its headquarters are due to be announced at the January 29 board meeting.
By housing Fiat-Chrysler's fiscal domicile in Britain, the group could pay less tax on dividends.
And proposing New York as the market for the group's primary stock listing could give the group better access to capital than Milan, where Fiat currently trades its stock.