FCA-PSA merger to reward longtime stockholders


MILAN/LONDON (Reuters) – Fiat Chrysler’s merger with Peugeot maker PSA will embrace a loyalty scheme to reward long-term traders and assist forestall future takeover makes an attempt, the prospectus for the deliberate tie-up exhibits.

Italian-American automobilemaker Fiat Chrysler (FCA) and France’s PSA agreed to mix in a $38 billion all-share deal in December, uniting manufacturers comparable to Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, Citroen and DS.

Holders of shares in Stellantis — because the merged group will probably be recognized — for an uninterrupted interval of a minimum of three years might obtain a particular voting share along with every frequent share, the businesses mentioned within the prospectus.

Such a transfer may make administration modifications and takeover makes an attempt of Stellantis tougher, they added. The tax penalties of the loyalty scheme are unsure, the businesses mentioned.

Stellantis may have a Dutch-domiciled mum or dad firm and its shares will probably be listed in Paris, Milan and New York.

Loyalty schemes are frequent for corporations within the Netherlands and have already been utilized by Exor, the holding firm of Italy’s Agnelli household and FCA’s controlling shareholder, not least throughout the spin-off of Ferrari, boosting Exor’s grip on the posh sports activities automobile maker.

PSA CEO Automobilelos Tavares will run Stellantis and can obtain a 1.7 million euro ($2.02 million) bonus upon completion of the merger.

FCA CEO Mike Manley will obtain “a recognition award with a worth equal to roughly 5 occasions his annual base wage” and a money retention after the merger if sure situations are met.

The 2 corporations mentioned they’ve agreed to evaluation the potential distribution of 1 billion euros to shareholders, both by means of a dividend evenly earlier than the merger, or to be distributed afterwards by Stellantis.

PSA and FCA have filed the merger plan with antitrust authorities in 21 nations and the European Union. So far, they’ve obtained approval from 15 nations and a preliminary okay from Brazil which turns into remaining subsequent week.

The EU can also be anticipated to authorize the merger, sources have mentioned.

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