(18 December 2019)DAILY MARKET BRIEF 2:PSA, Fiat Chrysler Boards Back Binding Merger Agreement

The boards of Peugeot maker PSA Group and rival Fiat Chrysler Automobiles NV on Tuesday backed a binding merger agreement that includes sweeteners to make the trans-Atlantic tie-up more attractive to U.S. regulators and PSA shareholders, according to people familiar with the discussions. The two boards voted to sign a memorandum of understanding, fixing the financial terms of the deal and the corporate governance structure of the combined company, the people said. The move marks an important step in solidifying a merger that was announced by the two auto makers in October. The tie-up aims to create a $50 billion auto giant that would rank among the world's largest car companies by sales. The move marks an important step in solidifying a merger that was announced by the two auto makers in October. The tie-up aims to create a $50 billion auto giant that would rank among the world's largest car companies by sales. Among the new terms added over the past several weeks were agreements that China's state-run Dongfeng Motor Group Co. would sell part of its 12.2% stake in PSA back to the French car maker and that Fiat Chrysler will keep its Comau division at least until the closing of the deal, the people close to the talks said.

By Vincent Mivelaz