Fiat Chrysler, Peugeot Scrap Billion-Dollar Dividends as Merger Faces Pressure

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Fiat Chrysler, Peugeot cancel large dividend payments they promised their shareholders as part of a broader agreement to merge the two car makers

Fiat Chrysler Automobiles NV and Peugeot maker PSA Group canceled dividend payments they promised their shareholders that were part of a broader agreement to merge, but said the deal remains on track.

Both companies had previously warned their annual dividends for 2019 were under review amid an industrywide scramble to raise and save cash to weather the coronavirus pandemic. The planned dividend, amounting to €1.1 billion for each company, was an important component in the merger deal.

 

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