Peugeot to Sell up to 7% of Faurecia Ahead of Fiat Chrysler Deal
October 28 2020 - 4:30AM
Dow Jones News
By Kim Richters
Peugeot SA has agreed to sell up to around 7% of its stake in
automotive supplier Faurecia SA ahead of Peugeot's expected merger
with Fiat Chrysler Automobiles NV, the two car makers said on
Wednesday.
The boards of Peugeot and Fiat Chrysler agreed that Peugeot
could take further measures to ensure that their planned holding
company, Stellantis, wouldn't take control of Faurecia, but that
this wouldn't include further share sales before the merger closes.
France's Peugeot currently owns 46% of Faurecia.
Peugeot and its Italian-American peer expect the agreement to
help them secure regulatory approvals for the merger, they
said.
Proceeds from the sale of shares will be distributed to
Stellantis shareholders along with proceeds from the planned
spin-off of the rest of the stake in Faurecia after the deal's
completion.
Fiat and Peugeot said their merger was making progress, with the
two companies signing cross-border merger terms on Oct. 27. They
expect it to close by the end of the first quarter next year.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
October 28, 2020 04:15 ET (08:15 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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