Peugeot and Vauxhall maker PSA has agreed plans for a merger with Fiat Chrysler that would create the world’s fourth largest carmaker.
PSA boss Carlos Tavares said it would mean a “bright future” for the combined company though unions are already worried about what a deal would mean for thousands of workers at Vauxhall’s Ellesmere Port and Luton factories.
However the companies said plans to make annual savings of €3.7bn (£3.2bn) through the deal were “not based on any plant closures”.
The announcement that the boards of the two companies had agreed to work towards a 50/50 merger came a day after they confirmed speculation that they were in talks.
It would create a company valued at almost £40bn with combined revenues of nearly €170bn (£147bn) and operating profit of more than €11bn (£9bn).
The companies said they would expect to make big savings from a “more efficient allocation of resources for large-scale investments in vehicle platforms, powertrain and technology” and from greater buying power.
Mr Tavares, who will become chief executive of the new combined group, said: “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity.”
More follows…
By
Source link
