Peugeot shareholders give go-ahead for Fiat-Chrysler tie-up     

Merger will create world's fourth largest carmaker

Peugeot and Fiat-Chrysler tie-up creates firm with 14 brands

Shareholders in Peugeot owner PSA gave the green light to the French company’s merger with Fiat Chrysler, one of the last steps towards creating the world’s fourth-largest carmaker.

At a special shareholder meeting, the deal to form the new company called Stellantis was first backed by top investors with double voting rights, including the Peugeot family, China’s Dongfeng, and the French state, via Bpifrance.

All other PSA shareholders backed the deal at a second meeting held online, with a 99.8% approval rate among votes cast. 

“We are ready for this merger,” PSA chief executive Carlos Tavares said, adding that the date for the closure of the deal would be announced shortly if all shareholder approvals were granted. He said the deal had now passed all regulatory tests.

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The shareholding structure will be altered as part of the merger, and existing double voting rights – which are accrued over time and give investors more weight in decisions – will not be carried over.

Mr Tavares, who will take the helm of the merged group, will have to revive the carmaker’s fortunes in China, rationalise a sprawling global empire and address massive overcapacity, as well as focus on creating cleaner cars.

Stellantis will have 14 brands, from FCA’s Fiat, Maserati, and US-focused Jeep, Dodge, and Ram to PSA’s Peugeot, Citroen, Opel and DS. 

• Reuters