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MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  Fiat Chrysler Automobiles N.V.    FCA   NL0010877643


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Top FCA, PSA investors tighten grip as merger approaches

11/20/2020 | 04:39am EST

* Loyalty scheme to reward long-term investors

* Set to benefit Exor, Peugeot family, France, Dongfeng

* Move could strengthen defences against hostile takeover (Adds details, context)

MILAN/LONDON, Nov 20 (Reuters) - Top shareholders in merging carmakers Fiat Chrysler (FCA) and Peugeot maker PSA have moved to tighten their grip on the combined business and head off any potential hostile bidders.

A prospectus for the deal, which will create the world's fourth-biggest automaker, showed on Friday there would be a loyalty scheme for long-term shareholders in the business, which will be called Stellantis.

Investors that hold Stellantis stock uninterrupted for at least three years could be given extra voting shares.

That could give extra clout to Exor, the holding company of Italy's Agnelli family and FCA's controlling shareholder, and to top PSA investors - the Peugeot family, French government and China's Dongfeng.

After the merger, Exor would become Stellantis's largest single shareholder with a 14.4% stake. The Peugeot family would follow with a 7.2% stake, while the French state and Dongfeng would hold 6.2% and 5.6% respectively.

Under the loyalty scheme, the combined voting rights of these top investors in Stellantis could top 50% after the three year period, according to Reuters calculations.

That could make it harder for other investors to push through management changes and make takeover attempts potentially more difficult.

No single shareholder will be allowed to hold more than 30% of voting rights based on the loyalty scheme, according to the tie-up agreement.

Tax consequences of the scheme were uncertain, the prospectus said.

Stellantis will have a Dutch-domiciled parent company and its shares will be listed in Paris, Milan and New York.

Loyalty schemes are common for companies in the Netherlands and have already been used by Exor, including in the spin-off of Ferrari, boosting Exor's grip on the sports car maker.

PSA CEO Carlos Tavares will run Stellantis and will receive a 1.7 million euro ($2 million) bonus on completion of the merger, the prospectus said.

FCA CEO Mike Manley will receive "a recognition award with a value equivalent to approximately five times his annual base salary" and a cash retention after the merger if certain conditions are met.

The prospectus said each company could terminate the tie-up if it is not completed by June 30, 2021 due to a failure to obtain the necessary regulatory approvals

PSA and FCA have filed the merger plan with antitrust authorities in 21 countries and the European Union. To date, they have obtained approval from 15 countries and a preliminary okay from Brazil, which becomes final next week.

The EU is also expected to authorise the merger, sources have said.

Shareholders of the two groups will meet on Jan. 4 to approve their merger, which is expected to be finalised by the first quarter of next year.

($1 = 0.8432 euros) (Additional reporting Gilles Guillaume in Paris; editing by Mark Potter and Jason Neely)

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DONGFENG MOTOR GROUP COMPANY LIMITED -5.05% 8.84 End-of-day quote.-2.21%
EURO / BRAZILIAN REAL (EUR/BRL) 1.25% 6.3926 Delayed Quote.-0.49%
EXOR N.V. -1.75% 65.1 Delayed Quote.-1.69%
FERRARI N.V. -2.82% 210.07 Delayed Quote.-8.47%
FFP -0.62% 96.9 Real-time Quote.2.43%
FIAT CHRYSLER AUTOMOBILES N.V. -4.35% 12.57 Delayed Quote.-14.26%
PEUGEOT SA -4.21% 21.85 Real-time Quote.-2.32%
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Sales 2020 86 158 M 104 B 104 B
Net income 2020 71,4 M 86,2 M 86,2 M
Net cash 2020 2 752 M 3 323 M 3 323 M
P/E ratio 2020 -134x
Yield 2020 15,5%
Capitalization 19 794 M 23 932 M 23 901 M
EV / Sales 2020 0,20x
EV / Sales 2021 0,16x
Nbr of Employees 191 752
Free-Float -
Duration : Period :
Fiat Chrysler Automobiles N.V. Technical Analysis Chart | FCA | NL0010877643 | MarketScreener
Technical analysis trends FIAT CHRYSLER AUTOMOBILES N.V.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 16,58 €
Last Close Price 12,57 €
Spread / Highest target 131%
Spread / Average Target 31,9%
Spread / Lowest Target -20,4%
EPS Revisions
Managers and Directors
Michael Mark Manley Chief Executive Officer & Executive Director
John Jacob Philip Elkann Chairman
Mark Stewart Chief Operating Officer-North America
Antonio Filosa Chief Operating Officer-Latin America
Pietro Gorlier COO-Europe, Middle East & Africa