Fiat Signs$4.35-billion Deal to Purchase Remaining Shares of Chrysler
It has been reported that Italian automaker Fiat SpA has signed a $4.35-billion deal to purchase remaining shares of Chrysler Group LLC. The company has already purchased 58.5% shares of the Chrysler and remaining 41.5% held by a United Auto Workers union trust fund.
According to the sources, this deal has led to an increase in Fiat’s shares by 16% in early tradeon the Milan Stock Exchange. Sergio Marchionne, CEO of both Fiat and Chrysler, is planning to share technology, cash and dealer networks withthe third-largest US automaker, Chrysler.
The main aim of the Sergio to purchase remaining shares of the Chrysler is to combine the companies.
According to the deal, Fiat will make an initial payment of $1.9 billion to the fund and with the payment of $1.75 billion at the end of the deal. As the part of an agreement with the UAW, the Chrysler will also make payments of $700 million to the fund.
According to latest statement by the Chrysler management, the deal is expected to close on or before 20 January. “The unified ownership structure will now allow us to fully execute our vision of creating global automaker that is truly unique in terms of mix of experience, perspective and know-how, solid and open organization”, said Marchionne.
United Kingdom News
- William Hill to merge online and retail divisions with Phil Walker in-charge
- BGC impressed by steps taken by UK casinos, disappointed by Government’s response
- Stephen Cohen reappointed as Commissioner of the Gambling Commission
- Online Sports Bettors don’t turn to Online Casinos during absence of sports: Research
- Blueprint Gaming launches Rhino Rampage video slot with new bonus feature concept