Fiat Spa, the largest carmaker in Italy, on Wednesday said it reached a deal with VEBA to buy the remaining 41.46 percent stake in Chrysler for $3.65 billion.
According to the Italians, the deal is expected to be close as soon as January 20 and the payment will be made in two forms: Fiat will pay $1.75 billion and Chrysler will contribute $1.9 billion through a special dividend for the remaining 41.4 percent stake held by the UAW union’s VEBA fund
“I have been looking forward to this day from the very moment that we were chosen to assist in the rebuilding of a vibrant Chrysler back in 2009” said John Elkann, chairman of Fiat.
“The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique,” Sergio Marchionne, chief executive officer of both carmakers, said in the statement.
Today’s announcement is an important step forward for FIAT, and will reduce the company’s reliance on the struggling European market. The Turin-based automaker became Chrysler’s controlling shareholder in 2009.
The United States government’s involvement in the Chrysler bankruptcy cost $1.3 billion.
Fiat currently owns 58.5 percent in Chrysler.