Fiat Chrysler, PSA Peugeot boards approve merger

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The boards of Fiat Chrysler and PSA Peugeot have approved merging the two companies to create the world's fourth-largest automaker with a value of about US$50 billion.

The formal announcement that the companies have agreed "to work towards a full combination of their respective entities by way of a 50/50 merger" came early Thursday.

The combined companies will be able to share in the cost of developing electric and autonomous vehicles. They'll also share vehicle technology and save money with greater purchasing power. The merger decision comes about five months after a similar deal with French automaker Renault fell apart.

 

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