(RTTNews) – Car manufacturers Fiat Chrysler Automobiles NV (FCAU) and Peugeot SA or PSA Group (PEUGF. PK), which agreed to a 50/50 merger of its business to create Stellantis, announced Tuesday that it had agreed to securely amend terms of its binding agreement.
The agreed amendments would address the liquidity that would have an effect on the automotive industry of the COVID-19 pandemic while preserving the economic price and basic balance of the original mixing agreement.
Specifically, the special dividend to be distributed through FCA to its shareholders before closing is now set at EUR 2. 9 billion, up from the 5. 5 billion euros announced in the past. In addition, the PSA Group’s 46% stake in Faurecia will be distributed to all Stellantis shareholders as soon as imaginable after closing, following approval through Stellantis’ board and shareholders.
The admin forums of either unanimously approved the modifications.
As a result of these changes, the respective FCA and PSA Group shareholders will gain a 23% stake in Faurecia, while their 50/50 stake in Stellantis will remain unchanged. Stellantis will now have an additional 2. 6 billion euros on its balance sheet. Sheet.
Corporations also agreed that the two management forums will make a prospective distribution of 500 million euros to the shareholders of each of the corporations before the final or, if not, a distribution of 1 billion euros to be paid after the final to all Stellantis shareholders.
These decisions will be made respecting the functionality and perspective of companies, the market and functionality in the meantime.
The estimated annual synergies from the creation of Stellantis have been particularly higher than more than five billion euros than the 3. 7 billion euros originally estimated. billion euros.
Stellantis is again expected to be the fourth largest car manufacturer in the world by volume.