Italian giant Fiat is about to become the sole owner of Chrysler, as the United Auto Workers’ VEBA Trust has agreed to sell its 41.46 percent stake in the Detroit-based automaker.
According to USA Today, the UAW will receive $4.35 billion for its stake. Fiat will pay $1.75 billion in cash, Chrysler and Fiat North America will pay another $1.9 billion in a “special distribution”, while Chrysler will make four annual payments of $175 million, the source reports.
"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment," Fiat and Chrysler CEO Sergio Marchionne said in a statement.
The transaction is expected to be completed on or before January 20, Chrysler announced.
"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment," Fiat and Chrysler CEO Sergio Marchionne said in a statement.
The transaction is expected to be completed on or before January 20, Chrysler announced.