Shareholders of both companies overwhelmingly approved the merger on Monday, carmakers said.
Once the merger is complete, the combined company will become the world’s fourth-largest automaker, said Jeff Schuster, an analyst at LMC Automotive. Together, the companies are worth about $ 57 billion.
Although Fiat Chrysler and PSA compete in Europe, PSA has virtually no presence in the United States, where Fiat Chrysler is the fourth largest carmaker in terms of sales in the country. Still, both companies have struggled to compete in the fast-paced car market in China, Schuster said. The merger will not immediately help that, he said, so it would continue to be a challenge for the new company.
Although the two companies compete with each other in Europe, their brands have slightly different market positions, Schuster said.
“And I think there is one [electric vehicle] PSA has experience that FCA doesn’t, “he said,” so there’s a good synergy there. “
The creation of the new company will help free up resources as it moves toward electric and autonomous vehicle technologies, said Michelle Krebs, an analyst at Cox Automotive.
“The creation of Stellantis is simply a large-scale example of an underlying trend that we are seeing in the car business right now, as all serious car manufacturers are facing the monumental task of reshaping their cars. operations looking to 2030, when electric vehicles and autonomous technology will have shifted from emerging to major, ”he said.
Actions of Stellantis will begin trading on the Paris and Milan stock exchanges on Monday, January 18 and on the New York Stock Exchange the next day.
The merger requires some final regulatory approvals, companies said, including those from the European Union and the European Central Bank.