Fiat Chrysler and PSA to Merge

November 18, 2019

Willkie is advising Bpifrance on the merger of Fiat Chrysler and Peugeot SA (PSA), contemplating the creation of the world’s fourth largest automaker.

Fiat Chrysler Automobiles (FCA) and PSA have agreed to pursue a merger of equals. Under the terms of the proposed combination, shareholders of each of the respective companies would own half of the combined entity, creating the world’s fourth-largest carmaker and reshaping the automotive sector.

The combined automaker would have annual sales of 8.7 million vehicles, total revenues of nearly €170 billion ($190 billion) and recurring operating profit of more than €11 billion, based on aggregated 2018 results. The new group would be domiciled in the Netherlands, with listings in Paris, Milan and New York.

PSA Chief Executive Carlos Tavares would be the group’s CEO. FCA Chairman John Elkann would become chairman.
Bpifrance owns 12.3 percent of PSA.

The Willkie team is led by partner Daniel Hurstel and includes partner Gabriel Flandin.