Peugeot owner’s board approves merger with Fiat Chrysler

The board of France’s PSA, owner of Peugeot, has given chief executive Carlos Tavares approval to launch a full-scale merger with Fiat Chrysler Automobiles, which would create one of the world’s largest carmakers.

The FCA board is expected to follow suit, paving the way for the companies to pursue a deal that would create a combined group with a market value in excess of €44bn, say people familiar with the talks. An announcement could come as soon as Thursday morning.

The companies are discussing basing the combined group in the Netherlands, a neutral location, where FCA is domiciled. The merger talks come months after an aborted attempt by FCA to merge with PSA’s French rival Renault, with FCA blaming the French government for its decision to walk away last June.

 

Via Financial Times