https://www.crainsdetroit.com/automotive/fiat-chrysler-psa-boards-sign-47-billion-merger-dealSample quote
Before the closing, Fiat will distribute to its shareholders a special dividend of more than $6 billion
while PSA will distribute its 46 percent stake in car-parts maker Faurecia SE to its own investors.
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China's Dongfeng Motor Corp., which owns 12 percent of PSA, will see its stake in the combined company decline to 4.5 percent as a result of the deal and the sale of a portion of its holding to the French carmaker.
Dongfeng's stake in PSA has attracted attention because of the possibility it could interfere with U.S. regulatory approval. U.S. economic adviser Larry Kudlow said last month the Trump administration would review the proposed merger because the deal would give the Chinese carmaker a stake in the combined company.
Tavares, on the call, said the companies don't expect any significant issues from the antitrust regulators.
Legal, tax issues
Fiat CEO Mike Manley, on the call, dismissed concerns over legal and tax issues that arose in recent weeks. GM in November filed a federal racketeering lawsuit against Fiat Chrysler, charging it with bribing the United Auto Workers union for more favorable terms. Manley called the allegation meritless.
Separately, Italian tax authorities have claimed that Fiat owes the government a hefty sum after underestimating Chrysler's value following its purchase several years ago. Manley reiterated that the case would have no material impact, and said both issues were reviewed during due diligence with PSA.
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