PARIS -- Shareholders of Fiat Chrysler Automobiles and PSA Group are expected on Monday to agree to a merger between the two companies that will create a new global automaking powerhouse and unite two industry dynasties -- the Peugeot and Agnelli/Elkann families.
Approval by shareholders will clear the way for the merger to close before its target date of the end of the first quarter, creating a combined entity called Stellantis.
Because of health protocols related to the coronavirus pandemic, the meetings will be held without the physical presence of shareholders, who can vote online. The pandemic altered the terms of the merger but did not derail it.
PSA executives, led by Louis Gallois, the chairman of the French automaker's managing board, will gather at the company's headquarters in Velizy, France, outside of Paris, starting at 10 a.m. central European time. Later in the day, starting at 2:30 p.m. CET, Fiat Chrysler will hold a virtual meeting led by chairman John Elkann and broadcast from its legal headquarters in Amsterdam. Stellantis will also be a Dutch company.
The merger will create the fourth-largest global automaker by volume based on 2019 sales – although based on 2020 data, Stellantis would rank No. 6 in sales -- with a presence in every major market and a portfolio of brands that spans segments from minicars to heavy-duty pickups.