Fiat Chrysler and PSA Groupe shareholders approve merger

Shareholders of Italian-American automaker Fiat Chrysler and France-based PSA Groupe on Monday approved a merger plan to create Stellantis, the world’s fourth-largest automotive group.

The voting was one of the last steps for the merger, which the companies expect to close on Jan. 16. PSA CEO Carlos Tavares, who will lead the combined company, said the deal has cleared all regulatory hurdles.

Stellantis’ common shares will begin trading on the Mercato Telematico Azionario in Milan and Euronext in Paris on Jan. 18, followed by the New York Stock Exchange on Jan. 19.

“We are ready. We are ready for this merger. We are ready for this value creation,” Tavares said during a virtual shareholders meeting Monday. He called this “a historical moment” for the company.

The merger is expected to provide about 5 billion euros, or $6.1 billion, in annual cost savings, according to officials. The automaker’s operations will largely be in North America and Europe. Stellantis will include 14 automotive brands — from Fiat Chrysler’s Maserati, Jeep and Ram to PSA’s Peugeot, Citroen and Opel.

Plans for the merger were initially confirmed by the companies in late 2019. Fiat Chrysler, the world’s seventh-largest automaker, had been on a quest for a tie-up to grow scale and consolidate costs for several years.