Fiat Chrysler and Peugeot expected to sign binding merger deal as soon as early-December: source
Logos of Peugeot and Fiat are seen in this illustration picture taken October 31, 2019. REUTERS/Regis Duvignau/Illustration
MILAN (Reuters) – Fiat Chrysler (FCHA.MI) and Peugeot owner PSA (PEUP.PA) aim to sign a final merger agreement as early as the beginning of next month, a source familiar with the matter said on Saturday.
The two automakers said earlier this week they planned to join forces in a 50-50 share merger to create the world’s fourth-largest automaker, seeking scale to cope with costly new technologies and slowing global demand.
They said they aimed to reach a binding deal on the $50 billion merger “in the coming weeks”.
The source said the two groups were at work to finalize all the merger details and they hoped to sign a binding memorandum of understanding in “three-four weeks”.
“This means the final agreement should be signed by early December, or by Christmas at the latest,” the source said, confirming a report published earlier on Saturday in La Stampa daily newspaper.
Reporting by Giulio Piovaccari; Editing by Christina Fincher