Flag with the Stellantis logo on the front entrance of FCA’s Mirafiori plant on January 18, 2021 in Turin, Italy.
Stefano Guidi | Getty Images
Stellantis – the combined carmaker of Fiat Chrysler and Groupe PSA in France – launches Tuesday under the symbol “STLA” on the New York Stock Exchange.
The $ 52 billion merger was completed on Saturday with the new company’s shares trading under the same symbol on Monday on the Euronext in Paris and the Borsa Italiana in Milan, Italy. Trading in U.S. stocks was delayed one day as U.S. markets closed Monday for Martin Luther King Jr.
Stellantis is the world’s fourth largest carmaker by volume. The company’s operations, including its 400,000 employees, will be largely in North America and Europe.
Here’s one more thing you need to know about the business:
Shares
Following the merger, Groupe PSA shareholders received approximately 1.7 shares of Stellantis for each PSA share, while Fiat Chrysler shareholders received 1 share of Stellantis for each of their shares.
In a virtual launch on the Borsa Italiana website, Carlos Tavares, CEO of Stellantis, former CEO of Groupe PSA, said the merger will add 25 billion euros ($ 30.3 billion) in value next year due to the expected cost reduction.
“All of our employees and our management teams are fully focused on the value creation embedded in the merger of FCA-PSA and the creation of Stellantis,” he said.
Cost cut
According to officials, the merger is expected to result in annual cost savings of approximately 5 billion euros, or $ 6.1 billion.
Stellantis
The company’s name is rooted in the Latin verb “stello” which means “to shine with stars”, the companies said.
The name Stellantis will be used for the umbrella corporation, but not for its vehicles. The company’s 14 individual car brands such as Alfa Romeo, Chrysler, Fiat, Jeep and Peugeot – all of which have a historical interest in their respective countries – will remain unchanged.
Board of directors
The Stellantis board consists of two executive directors, Tavares and former Fiat Chrysler chairman John Elkann.
The non-executive directors of the companies are:
- Robert Peugeot, of the French carmaker’s Peugeot family
- Henri de Castries, former CEO of insurer Axa SA
- Andrea Agnelli, Elkann’s cousin and a family member who controls Fiat Chrysler
- Fiona Clare Cicconi, Chief Human Resources Officer at AstraZeneca PLC
- Nicolas Dufourcq, CEO of French investment bank Bpifrance SA
- Ann Frances Godbehere, Director at Royal Dutch Shell PLC
- Wan Ling Martello, partner and co-founder of private equity firm BayPine
- Jacques de Saint-Exupéry, Head of the Workers’ Council at PSA
- Kevin Scott, chief technology officer of Microsoft Corp.
– CNBC’s Elliot Smith contributed to this report.