Fiat Chrysler Automobiles N.V. and Peugeot S.A. (Groupe PSA) continue to advance towards the completion of their proposed combination to create Stellantis, the world’s fourth-largest global automotive OEM by volume.
A further step forward in this regard was taken on 27th October when their respective Boards signed the cross-border merger terms that will apply to the combination. The parties expect the combination to be completed by the end of the first quarter 2021, subject to the customary conditions set forth in their Combination Agreement.
Both Boards also agreed to permit Groupe PSA to sell up to approximately 7 per cent of Faurecia’s outstanding share capital prior to the completion of the merger and to take such other steps (excluding additional disposals of shares) as may be necessary to ensure that Stellantis will not acquire control of Faurecia, consistent with the terms of the original Combination Agreement. This is expected to facilitate the securing of the necessary regulatory approvals in relation to the merger.
The cash proceeds from this contemplated disposal are expected to be distributed to the Stellantis shareholders along with the distribution in kind of the remaining stake in Faurecia, as already announced on 14th September 2020, promptly after the completion of the merger and subject to approval by the Stellantis Board and shareholders.
Both FCA and Groupe PSA also acknowledged the effective management of the Covid-19 crisis by Faurecia, and the upward revision of 2020 guidance and confirmation of all targets for 2022 during Q3 sales presentation.