Fiat Chrysler Automobiles, born from the merger of Fabbrica Italiana Automobili venerable Torino ( Fiat ) and its American subsidiary, is Monday, October 13 gets on the track on Wall Street, spending the end of a long journey and a change of international stature.
Farewell to historic headquarters in Turin, where the iconic Italian group was founded in 1899 The new company, born at the end of a long legal process will be under Dutch law and pays taxes in the UK.
It’s Sunday formally take effect the merger of Fiat Fiat Investments NV, which will Fiat Chrysler Automobiles (FCA), seventh manufacturer worldwide, with the ambition to climb even higher in the rankings.
Monday, the title FCA will be entering the New York Stock Exchange at 9:30 local time, and shortly thereafter in secondary listing on Borsa Italiana, where it will replace the ordinary share Fiat , the group confirmed Friday, after authorization from the Italian stock market authority Consob.
A rapprochement launched five years ago
A consecration for CEO Sergio Marchionne, chief investment strategist of this rapprochement launched five years ago between two giants at the time almost moribund. Same thing for the president Fiat , John Elkann, who supported the controversial long, especially in Italy where he lived project by some as an abandonment and proof ingratitude, despite repeated assurances that “the Italian activities and commitment to Italy (from Fiat ) remain unchanged.”
engagement period has not been a bed of roses: it was not until January 2014 that Fiat finally managed to complete its acquisition of 100% of Chrysler after hard legal battles with Veba, the pension fund of the American union UAW, which held much.
Fiat will also spend more than 400 million euros’ to repurchase the securities of shareholders disagree with the project who argued their “right of withdrawal” or nearly 54 million shares (equivalent to 4.3% of its share capital) Has -there acknowledged this week.
Deeper pockets
But trading in New York, inspired by that made not just one year by its parent company CNH Industrial (bus and industrial vehicles), will have the advantage of moving the center of gravity of the group towards the most liquid US market, where investors are provided with deeper pockets.
“roadshow” (promotional tour ) Sergio Marchionne and Chief Financial Officer Richard Palmer is already scheduled for the coming weeks in the United States to try to convince American investors to increase their weight in the shareholding FCA and thus generate new resources in the hope of avoiding a capital increase.
Many analysts believe, however, that this will be difficult, especially in view of the ambitious stimulus plan expected Alfa Romeo brand and other premium brands. A decision is expected at the Board of Directors scheduled on October 29, which should also validate the quarterly accounts of the group.
Future repurchases in order
“We’re moving quickly as possible, “said the fiery Sergio Marchionne to Businessweek magazine published this week, while recognizing that” sometimes, in the automotive industry, you can crash. “
For FCA, the objective of which is displayed to reach 7 million cars sold per year (against 4.4 million last year) in five years, the marriage being are also not necessarily the last. “ Fiat Chrysler is ready to participate in the process of consolidation of the automotive sector in the next 5 to 10 years”, said John Elkann.
Sergio Marchionne, who also reiterated that he did not intend to make her apron before 2018, there is no doubt that “the sector needs” consolidation. “He is still very fragmented compared to the level of capital you have to invest,” said he tried.
(With AFP)
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