With over 99-percent approving, PSA Group shareholders have approved its pending merger with Fiat Chrysler Automobiles. It’s now on the shareholders of FCA to approve the deal. Assuming FCA follows suit, the two automakers will merge to form the combined automaker, Stellantis.
Today’s vote at PSA was led by the company’s two largest shareholders, the Peugeot family and China’s Dongfeng Motor. Getting these two parties on board with the deal nearly guaranteed the mergers approval. PSA CEO Carlos Tavares praised the approval and merger in a call following the vote.
FCA shareholders are expected to approve the merger shortly.
Despite the approval on the PSA side, the company has not announced a date for the actual consolidation to take place. Tavares said the final date will be announced shortly, likely after FCA shareholders have given their blessing. Reports suggest the merger could be finalized by late January since all regulatory approvals have been obtained.
Once finalized, Stellantis will form the fourth largest automaker in the world. The combined entity will house 14 brands around the globe, with some acting as current competitors. Tavares has not confirmed if the company will consolidate its brands post-merger, but many analysts suspect it is inevitable.
Tavares, who will serve as Stellantis CEO, will immediately turn his attention to China and electrification. While FCA and PSA have some complimentary traits, both automakers are fairly weak in the important Chinese market. FCA is also considered a lagger when it comes to electrification, while PSA is stronger on that front. In fact, PSA has disclosed publicly that it has halted all investments into internal combustion engines.
In addition to PSA’s CEO serving as the new entity’s CEO, PSA Group will also have the majority of Stellantis’ board seats. Both FCA and PSA will have five board seats, but Tavares will serve as the sixth and tie-breaker.