Fiat has completed its acquisition of Chrysler Group, the Italian-based manufacturer announced today after buying the remaining 41.46 percent stake from the United Auto Workers’ VEBA Trust.
The latter received $1.75 million in cash from Fiat and $1.9 million from the Chrysler Group as the transaction was closed. According to an agreement between Fiat and the VEBA Trust, the Italian company has to make three more annual payments of $700 million each.
The entire deal will cost Fiat and Chrysler $4.35 billion and marks an important step in Sergio Marchionne’s efforts to transform Fiat from an unprofitable company into a global carmaker that’s hoping to compete against Volkswagen, General Motors and Toyota.
As we’ve reported earlier this month, Sergio Marchionne is set to remain CEO of Fiat-Chrysler until at least 2017 to oversee the full merger between the two companies. The manufacturer’s new three-year business plan will be revealed in May.
The entire deal will cost Fiat and Chrysler $4.35 billion and marks an important step in Sergio Marchionne’s efforts to transform Fiat from an unprofitable company into a global carmaker that’s hoping to compete against Volkswagen, General Motors and Toyota.
As we’ve reported earlier this month, Sergio Marchionne is set to remain CEO of Fiat-Chrysler until at least 2017 to oversee the full merger between the two companies. The manufacturer’s new three-year business plan will be revealed in May.
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