The marriage of the worlds two largest automobile enterprises gives birth to the fourth largest automobile group

category:Finance
 The marriage of the worlds two largest automobile enterprises gives birth to the fourth largest automobile group


According to the joint statement, the merged company will register its parent company in the Netherlands and will be listed on Euronext, Italian stock exchange and New York Stock Exchange respectively. John Elkann, chairman of FCA, will be chairman of the merged company, while Carlos Tavares, chairman of PSAs management committee, will be the CEO.

After the announcement, the share price of fac soared. As of October 30, the U.S. stock closed at $15.32, with the latest total market value of $30.02 billion.

In fact, behind the marriage of giants, it is the recession of European automobile industry. On the one hand, with fierce market competition, automobile manufacturers are facing great pressure of innovation in the field of electric vehicles and automatic driving technology; on the other hand, the prospect of brexit is uncertain, which has a negative impact on the development of European automobile industry.

PSA, by contrast, is far ahead in electrification. At present, PSA has two new energy platforms, including the emp2 platform used to build hybrid vehicles and the CMP platform compatible with pure electric, gasoline and diesel power units. The platform will also be transformed into an e-CMP platform for mass production of pure electric vehicles. PSA plans to launch seven pure electric models by 2021. PSA group is expected to achieve 100% electrification by 2025. PSA groups business is almost all over the world, but it has not been able to enter the lucrative North American market. It can be seen that the combination of FCA and PSA is more meaningful. According to the joint statement, the deal will bring about a synergistic effect of 3.7 billion euros (29 billion yuan) per year for the combined company. At the same time, the combined companys annual sales will reach 170 billion euros (1334.3 billion yuan), and realize an annual operating profit of 11 billion euros (86.3 billion yuan). The newly merged company will cover the product matrix of super luxury cars, luxury cars, mainstream passenger cars, SUVs, pickups and light commercial vehicles. Market participants said that the merger is naturally a matter of borrowing from each other, but the risk is that the internal personnel relations and interests of large auto groups are complex, so it is obviously not easy to merge. Source: responsible editor of China Securities News: Yang bin_nf4368

It can be seen that the combination of FCA and PSA is more meaningful. According to the joint statement, the deal will bring about a synergistic effect of 3.7 billion euros (29 billion yuan) per year for the combined company. At the same time, the combined companys annual sales will reach 170 billion euros (1334.3 billion yuan), and realize an annual operating profit of 11 billion euros (86.3 billion yuan). The newly merged company will cover the product matrix of super luxury cars, luxury cars, mainstream passenger cars, SUVs, pickups and light commercial vehicles.