FCA-PSA merger to reward longtime stockholders

FCA-PSA merger to reward longtime stockholders

FCA-PSA merger to reward longtime stockholders

MILAN/LONDON (Reuters) – Fiat Chrysler’s merger with Peugeot maker PSA will include a loyalty scheme to reward extended-time period buyers and aid stop long run takeover makes an attempt, the prospectus for the planned tie-up shows.

Italian-American carmaker Fiat Chrysler (FCA) and France’s PSA agreed to merge in a $38 billion all-share offer in December, uniting models this kind of as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, Citroen and DS.

Holders of shares in Stellantis — as the merged group will be known — for an uninterrupted period of time of at the very least 3 several years may well get a special voting share in addition to just about every common share, the companies reported in the prospectus.

This sort of a move could make management modifications and takeover tries of Stellantis a lot more hard, they extra. The tax outcomes of the loyalty plan are uncertain, the companies stated.

Stellantis will have a Dutch-domiciled guardian organization and its shares will be stated in Paris, Milan and New York.

Loyalty techniques are prevalent for businesses in the Netherlands and have already been employed by Exor, the holding corporation of Italy’s Agnelli relatives and FCA’s managing shareholder, not the very least during the spin-off of Ferrari, boosting Exor’s grip on the luxurious athletics car maker.

PSA CEO Carlos Tavares will operate Stellantis and will get a 1.7 million euro ($2.02 million) bonus upon completion of the merger.

FCA CEO Mike Manley will acquire “a recognition award with a value equivalent to roughly 5 instances his annual base salary” and a dollars retention following the merger if specific disorders are met.

The two corporations said they have agreed to assessment the opportunity distribution of 1 billion euros to shareholders, both through a dividend evenly right before the merger, or to be dispersed later on by Stellantis.

PSA and FCA have filed the merger prepare with antitrust authorities in 21 nations and the European Union. To date, they have acquired acceptance from 15 countries and a preliminary alright from Brazil which turns into last future week.

The EU is also envisioned to authorize the merger, resources have reported.

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