Fiat said that its merger with Chrysler is on track after a tally of shareholders votes showed there are no derailments to the plan, a crucial step in the Italian carmaker’s turnaround strategy.
Sergio Marchionne, Fiat’s CEO, wants to merge the two auto makers into a Dutch-registered company called Fiat Chrysler Automobiles (FCA) to get on the US stock market. The listing is needed to gain funds for the ambitious five-year investment plan. The carmaker would fail or postpone the merger if needs to pay more than 500 million euros to investors who want to sell their shares, exercising a legal right activated by Fiat’s decision to move its offices away from Italy.
A statement from Fiat said that the carmaker “has determined that even if all remaining unmatched notices and unmatched confirmations were to be matched, the maximum number of shares for which cash exist rights have been validly exercised will yield and aggregate exposure that is below the cap.”
At the beginning of August, the merger between Fiat and its US subsidiary Chrysler was approved by shareholders, but dissenting investors had a right to sell their stock at the price of €7.727. Last Friday, Fiat shares were up 1.3%, surpassing the Italian benchmark share index.
By Gabriela Florea