PSA Chief Executive Carlos Tavares is confident a US$50 billion merger of the maker of Peugeot vehicles with Fiat Chrysler will proceed as planned and deliver synergies of at least €3.7 billion (US$4.2 billion).
The deal to create the world’s fourth-largest carmaker has become even more vital because of the impact of the coronavirus crisis and to speed up cost savings, Tavares told PSA’s annual shareholder meeting on Thursday, June 25.
“The merger with FCA is the best among the solutions to cope with the crisis and its uncertainties.”
Global car sales have slumped as measures to contain the coronavirus pandemic forced production lines to shut and showrooms to close, with carmakers scrambling to conserve cash in the industry’s worst since the 2008-09 financial crisis.
Tavares also played down fresh European Union antitrust scrutiny of the planned merger, adding that he was confident it would be finalised in the first quarter 2021 “at the latest.”
“The timetable of the merger with FCA is being strictly respected,” he said, adding that projected synergies of €3.7 billion from the deal was a “floor.”
EU antitrust regulators last week began a four-month investigation into the deal, claiming it may harm competition in small vans in 14 EU countries and Britain.
Full Content: Economic Times
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