French carmaker “Peugeot SA” and US-Italian “Fiat Chrysler” have signed an agreement to create the world’s fourth largest automaker. The binding combination agreement provides a 50/50 merger of their businesses to create the 4th largest global automotive original equipment manufacturer by volume and third largest by revenue. The combined revenue of the two entities will be close to 170 billion euros i.e. $190 million. The combined entity will have a workforce of more than 4,00,000.
The combined group would be headquartered in the Netherlands. Fiat Chrysler’s chief John Elkann will be the chairman and PSA’s Carlos Tavares chief executive of the new entity.
Source: The DD News