Shareholders in Peugeot owner PSA on Monday, January 4, gave the green light for the French company to merge with Fiat Chrysler, bringing the companies closer to creating the world’s fourth largest automaker.
Fiat Chrysler investors are due to give their verdict later on Monday.
The new company will reportedly be worth US$52 billion, per Yahoo Finance, and will be called “Stellantis” which means to brighten stars.
At a special shareholder meeting, the deal to form the Stellantis was first backed by top investors with double voting rights, including the Peugeot family, China’s Dongfeng, and the French state, via Bpifrance.
Execs have said the deal will provide significant cost savings and help keep both businesses competitive as the auto industry adapts to challenges such as the rise of electric vehicles.
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