Following the August 1 shareholder meeting, when the merger between Fiat SpA and Chrysler Group LLC won approval by two-thirds majority, the only obstacle for the deal was that dissenting investors could opt out of the company.
Italy’s Fiat SpA self imposed a 500 million euros ($658 million) cap, which – if exceeded – would have triggered the merger’s failure or at least a setback. That would have compromised chief executive officer Sergio Marchionne’s intent on listing the new company, Fiat Chrysler Automobiles, on the New York Stock Exchange in October.
Now, according to a statement from the Turin-based company, a preliminary tally shows the total of shares the Italian carmaker needs to buy back from dissenting investors would not reach the threshold, clearing an important hurdle before the deal can be closed.
“I am delighted with these results,” Fiat Chairman John Elkann said in the statement. “We are now looking forward to the completion of this project.”
Fiat Chrysler Automobiles NV, a new entity that was created as the world’s seventh largest carmaker, would move to take on the likes of GM, VW AG or Toyota – the top three automakers in the world. The new company is listed in the Netherlands, has its global headquarters in London and future stock listings in New York and Milan.