Photo: Peugeot
Just a few months ago, an exuberant FCA was telling the world how it has found its match. With no warning, lovesick FCA decided to ask the hand of Renault in marriage, baffling the world.
Unfortunately for FCA, Renault’s father, the French government, refused to give the would-be couple its blessing. Now, the Americans are trying the same recipe on another French beauty, PSA.
PSA is the group that owns Citroen, Peugeot, DS and Opel, complete with its British offshoot Vauxhall. FCA has its own children to bring into the mix, a hell of a lot more, taking into account the nameplates owned by both the Americans and their Italian owners, Fiat.
Rumors about this possible tie-up have been confirmed since earlier this week by FCA, who on Thursday came back on the subject with a proposal for the French that looks nearly copy-pasted from the one made to Renault.
FCA says the combined might of the two auto groups would make the joined company – which would be equally owned, paving the way for possible gridlocks in the future – the fourth-largest player in the industry, with an estimated 8.7 million cars sold each year. Also, combined revenues of nearly €170 billion are on the table.
FCA calculated there would be €3.7 billion estimated annual run-rate synergies, without having to close plants and let people go.
Sound familiar? It should, as it is nearly identical with the proposal made to Renault. The big difference? PSA said yes, rings were exchanged, and there’s no grumpy government to stop them.
The joined statement released on Thursday says the two companies have agreed to work towards a full combination of their respective businesses by way of a 50/50 merger. A draft of the prenup is expected to be ready in the coming weeks.
Full details on the proposed merger can be found in the document attached below.
PSA is the group that owns Citroen, Peugeot, DS and Opel, complete with its British offshoot Vauxhall. FCA has its own children to bring into the mix, a hell of a lot more, taking into account the nameplates owned by both the Americans and their Italian owners, Fiat.
Rumors about this possible tie-up have been confirmed since earlier this week by FCA, who on Thursday came back on the subject with a proposal for the French that looks nearly copy-pasted from the one made to Renault.
FCA says the combined might of the two auto groups would make the joined company – which would be equally owned, paving the way for possible gridlocks in the future – the fourth-largest player in the industry, with an estimated 8.7 million cars sold each year. Also, combined revenues of nearly €170 billion are on the table.
FCA calculated there would be €3.7 billion estimated annual run-rate synergies, without having to close plants and let people go.
Sound familiar? It should, as it is nearly identical with the proposal made to Renault. The big difference? PSA said yes, rings were exchanged, and there’s no grumpy government to stop them.
The joined statement released on Thursday says the two companies have agreed to work towards a full combination of their respective businesses by way of a 50/50 merger. A draft of the prenup is expected to be ready in the coming weeks.
Full details on the proposed merger can be found in the document attached below.
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