Fiat Chrysler, PSA merger to include loyalty scheme: prospectus

Fiat Chrysler, PSA merger to include loyalty scheme: prospectus

The merger between Fiat Chrysler and French rival PSA will include a loyalty share scheme to reward long-term investors in the new group and help prevent future takeover attempts, the prospectus for the planned tie-up showed.

FILE PHOTO: A Fiat Chrysler Automobiles sign at the U.S. headquarters in Auburn Hills, Michigan
FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo

MILAN: The merger between Fiat Chrysler and French rival PSA will include a loyalty share scheme to reward long-term investors in the new group and help prevent future takeover attempts, the prospectus for the planned tie-up showed.

In December, Italian-American car maker Fiat Chrysler (FCA) and PSA agreed to combine in a US$38 billion all-share deal, uniting brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, Citroen and DS.

The companies said in the prospectus that each may terminate the tie-up agreement if the merger were not completed by June 30, 2021 due to a failure to obtain the necessary regulatory approvals.

(Reporting by Agnieszka Flak; editing by Valentina Za)

Source: Reuters

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