Fiat Chrysler and PSA Peugeot have signed a deal for a 50-50 merger. The deal creates the world's fourth-largest automaker with annual sales of 8.7 million cars. It’ll be valued at $50 billion.
The merger was first unveiled in October and the companies announced the binding terms in a joint statement Wednesday.
The companies say the new group will be led by PSA's CEO Carlos Tavares with Fiat Chrysler's chairman John Elkann continuing as chairman of the merged company.
Officials say the merger means the new company will be better poised to compete in the electric and autonomous vehicles market.
Tavares said in the statement:
“Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services. I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigor and enthusiasm.”
The combined company will based in the Netherlands and keep its head office for North American operations outside of Detroit.