Fiat Chrysler and Peugeot Citroen tweak merger terms due to pandemic

16 Septembre, 2020, 00:38 | Auteur: Auguste Feret
  • Fiat Shaves $3.1 Billion Off Dividend Tied to PSA Merger

Fiat Chrysler (FCA) and Peugeot Citroen (PSA) announced on Monday they'd modified the terms of their mega-merger in light of business disruptions caused by Covid-19.

Under the revised terms, FCA will cut from 5.5 billion euros ($6.5 billion) to 2.9 billion euros the cash portion of a special dividend its shareholders are set to receive on conclusion of the merger.

FCA and PSA, which past year agreed to merge to give birth to Stellantis, the world's fourth largest vehicle manufacturer, said late on Monday they had amended the accord to conserve cash and better face the COVID-19 challenge to the auto sector.

In addition, PSA will scrap the planned spin-off of its 46 per cent stake in parts supplier Faurecia.

The exceptional dividend that FCA was to distribute to its shareholders along with the distribution of Faurecia's shares were also issues of concern, since the French equipment makers's market capitalization has declined since the merger's announcement.

"Amendments preserve the balance of original combination agreement", the two groups said, adding that ownership of Stellantis would still be split 50/50 between current PSA and FCA shareholders.

Ant-Man 3 Casts Jonathan Majors as Villain Kang the Conqueror
It's not known what character he will play but it will reportedly be a villain. And did we mention that Kang is also a descendant of Reed Richards, aka Mr.

Fire erupts in landmark building in Beirut | MEO
The disaster sparked massive protests and prompted the resignation of the government. The cause of the explosion and the fire that led to it are still under investigation.

Settlement reached in fatal Kentucky police shooting of Breonna Taylor
Daniel Cameron, Kentucky's attorney general, released a statement this week saying the investigation was still ongoing. The city government will be making a public announcement at some point today, possibly by 2pm based on the reporting .

FCA and PSA said annual estimated synergies from their merger were now seen at more than €5 billion, compared with an initial estimate of over €3.7 billion.

"Of the two, FCA might be a bit more of a victor in the short term given the structure of the deal and the numerous payouts to shareholders to come in the quarters ahead (potentially close to 5 billion euros versus the current capitalization of around 16 billion euros)".

Confirming last week that the deal was on track, FCA's chief executive Mike Manley said both he and PSA CEO Carlos Tavares were aware of the need for the two firms to get to the merger with the strongest balance sheets possible as well as for shareholders to get what they expected.

The two carmakers confirmed that they expect to complete the tie-up process by the end of the first quarter of 2021.

Both companies have this year scrapped dividend payments on 2019 results, each worth 1.1 billion euros, as the sector grapples with the pandemic which has sent auto sales plunging.

Conseillé:



Populaire

Worker falls from Florida's StarFlyer attraction to his death, officials say
The Occupational Safety and Health Administration and the Orange County Sheriff's Office are conducting the investigation. A 21-year-old theme park worker who fell nearly 200 feet from the StarFlyer swing ride in Orlando , Florida, has died.

Prudhomme back on the race after testing negative for coronavirus
Kamna was part of a group of 15 riders who broke away from the peloton early in the 164-kilometer (102-mile) trek. The last six kilometers (4 miles) of the climb are particularly hard , with very steep sections and sharp turns.

Dallas Cowboys lose 3 starters in narrow loss to LA Rams
I was really pleased with the energy we had from our sideline, but when that's the only thing you're hearing, it is eerie. Akers, a second-round draft pick, started the game, but it was Brown, a sixth-year pro, who got the most carries.

PSG vs Marseille: Neymar fires back over racism allegations
The 30-year-old Marseille defender took to social media to defend himself and suggested Neymar was simply being a sore loser.

Rockets coach Mike D'Antoni says he won't return, per report
D'Antoni took the helm of the Rockets in the 2016-17 season and guided them to a 217-101 record since then. Mike D'Antoni will inform ownership of the Houston Rockets that he won't return as head coach next season.

Le chrono pour Ganna, le général pour Simon Yates — Tirreno-Adriatico
Le jeune Russe Aleksander Vlasov (Astana) a quant à lui démontré qu'il sera un des favoris du Giro d'Italia (3-25 octobre) en remportant le maillot blanc de meilleur jeune.

Alpine, pilier sport de Renault, alignera un nouveau bolide au Mans 2021
L'écurie Signatech Alpine dirigée par Philippe Sinault courra en LMP1 pour toute la saison 2021 et les 24 heures du Mans 2021. En plus de la F1 , Alpine sera engagée, en 2021, dans la catégorie reine de l'endurance, en LMP1.

Netanyahu joins Bahrain, UAE ministers at W.House for peace signing
Israel, Bahrain and the UAE are expected to sign a trilateral document, in addition to the bilateral agreements. Oman was expected to send its ambassador to Tuesday's ceremony, a senior USA official said.

Vitaa & Slimane décalent leur tournée "Versus Tour"
Quarante-deux départements sont classés en zone rouge en France et les cas de contaminations explosent. La raison de ce report: les conditions sanitaires.

Sasha Banks Appears In The Mandalorian Season 2 Trailer
Earlier this year, reports emerged that Banks had a role in the Star Wars series , but no further details were known at the time. You can check out both the art and the trailer embedded below.