FCA-PSA deal terms 'set in stone' for 50-50 merger

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Terms of a planned merger between Fiat Chrysler and Peugeot-owner PSA are set in stone, FCA's chairman said on Wednesday, brushing off talk that ...

MILAN: Terms of a planned merger between Fiat Chrysler and Peugeot-owner PSA are set in stone, FCA's chairman said on Wednesday, brushing off talk that some aspects of the deal might be re-negotiated because of the COVID-19 crisis.

The potential payment of such a big dividend to shareholders when the coronavirus crisis has left cash-starved manufacturers pushing for government support has been questioned within Italy's ruling coalition."The terms of the FCA-PSA deal are set in stone as binding contracts in their nature are," Elkann said in conference call after the annual shareholder meeting of Exor , the Agnelli family holding company which controls FCA.

"This is a loan which is really designed to help the automotive sector in Italy which we know is a very important part of the Italian economy," Elkann said, referring to the state-backed loan.

 

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