With all conditions for the merger finally met, Fiat SpA announced it would be incorporated together with its wholly-owned subsidiary Chrysler Group LLC into the Dutch-registered FCA this Sunday.
After first taking a majority stake in the US automaker back in 2009, the Italian carmaker completed the full purchase of the company this year and the company has been planning since the incorporation into Fiat Chrysler Automobiles NV, a Dutch registered firm that has the global headquarters in London and will have its shares traded on the New york Stock Exchange and in Milan.
“Investors have a more favorable view of the (auto) industry because of the better margins, the better cash flow,” says David Sowerby, portfolio manager for Loomis Sayles.
Fiat said that after finishing the official incorporation on Sunday, the shares would begin trading the next day on Wall Street, with the company receiving a notification from the New York Stock Exchange that the new company qualifies for listing on the exchange. On October 13, the first day of trading, owners of Fiat shares would be given an equal amount of stock of the new FCA shares. With the New York listing, the company’s shares would also begin trading on the Milan stock exchange the same day, although they are still subject to the market regulator’s authorization.