PSA emerges as FCA’s ‘capital junkie’ fix

Megan Lampinen takes a closer look at the implications of FCA's proposed merger with PSA and how it compares to what was on offer with Renault

It’s official—FCA and PSA are merging. Well, more specifically the boards have agreed to work towards a full combination of their respective businesses by way of a 50/50 merger. The idea is that the shareholders of each company would own 50% of the equity of the newly combined group, which will be headed by current PSA Chief Executive Carlos Tavares, who will also serve on the board. The proposed board will consist of 11 members: five from the FCA side (including John Elkann as Chairman) and six from the PSA side. Commenting on the agreement, Tavares promised that it “brings significant value to all the stakeholders and opens a bright future for the combined entity.”…

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