Fiat Chrysler and PSA Groupe shareholders approve the merger

An employee at Fiat Chrysler’s Windsor assembly plant works in the chassis of the Chrysler Pacifica Hybrid in December 2016.

Fiat Chrysler

The shareholders of the Italian-American automaker Fiat Chrysler and the France-based PSA Groupe approved a merger plan on Monday to create Stellantis, the world’s fourth largest automobile company.

The vote was one of the final steps in the deal, which the companies are expected to close on January 16. PSA CEO Carlos Tavares, who will lead the combined company, said the deal cleared all regulatory hurdles.

Stellantis common stock trades on Mercato Telematico Azionario in Milan and Euronext in Paris on January 18, followed by the New York Stock Exchange on January 19.

“We are ready. We are ready for this merger. We are ready for this added value,” said Tavares during a virtual general meeting on Monday. He called this “a historic moment” for the company.

The merger is expected to bring annual cost savings of around 5 billion euros ($ 6.1 billion) according to officials. The automaker will primarily operate in North America and Europe. Stellantis will include 14 automobile brands – from Maserati, Jeep and Ram from Fiat Chrysler to Peugeot, Citroen and Opel from PSA.

The companies initially confirmed the plans for the merger at the end of 2019. Fiat Chrysler, the world’s seventh largest automaker, had been looking for a partnership for several years to increase size and consolidate costs.

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