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Fiat, Peugeot shareholders OK merger

Julia Naue
·1-min read

Shareholders in both PSA - the French parent company of car makers Peugeot, Citroen and Opel - and their counterparts in the US-Italian firm Fiat Chrysler Automobiles (FCA) have voted to approve a planned merger.

The shareholders approved the proposed merger with overwhelming majorities, the companies said in separate statements on Monday following two shareholders' meetings.

"We are ready for this merger," said PSA CEO Carlos Tavares, who will also lead the new firm.

The resulting company, to be named Stellantis, is set to become the world's fourth largest car company.

"This is a historic moment," Taveres added and promised a date for the merger would be announced soon.

"Stellantis will be one of the world's leading vehicle manufacturers," said FCA Chairman John Elkann following the FCA shareholders meeting later in the day.

It was important that a company emerges that had the size, resources, diversity and know-how to "successfully seize the opportunities of a new era," he added.

Monday's shareholder votes, which took place online due to coronavirus restrictions, followed the approval of the mega merger by European Union competition watchdogs in December.

Individual brand names such as Opel, Peugeot, Citroen, Chrysler, Jeep, Alfa Romeo, Lancia, Abarth and Dodge would continue to exist.

PSA and FCA decided on their merger plans in December 2019.

Before the pandemic, Fiat Chrysler and PSA together sold about 8.7 million vehicles per year and had a turnover of 170 billion euros ($A272 billion).

Only Volkswagen, Toyota and the French-Japanese Renault-Nissan group were bigger in 2019.