By Gokhan Ergocun
ISTANBUL (AA) – Fiat Chrysler (FCA) and the Peugeot owner, Groupe PSA announced a merger on Thursday that will make it the fourth largest carmaker of the world.
The merger will have 50% shareholders from PSA, and the other half from FCA, according to a joint statement.
"The proposed combination would create the 4th largest global OEM in terms of unit sales (8.7 million vehicles), with combined revenues of nearly €170 billion ($200 billion) and recurring operating profit of over €11 billion ($13 billion) on a simple aggregated basis of 2018 results," it noted.
The move will generate cost savings and other benefits of approximately €3.7 billion ($4.12 billion) every year.
The parent company of the merger will be Dutch-domiciled.
Carlos Tavares, the CEO of PSA, said: "This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity."
Mike Manley, the CEO of FCA, also stressed that they can create a "world class" global firm.
Last May, FCA proposed a similar merger with Renault, but the French company turned it down.
In 2014, Fiat and Chrysler merged to form the FCA.