SHANGHAI :
Shareholders Agree Dongfeng Motor Should Approve PSA-Fiat Chrysler Merger
Zhang Yushuo
DATE:  Apr 27 2020
/ SOURCE:  Yicai
Shareholders Agree Dongfeng Motor Should Approve PSA-Fiat Chrysler Merger Shareholders Agree Dongfeng Motor Should Approve PSA-Fiat Chrysler Merger

(Yicai Global) April 27 -- Shareholders in Dongfeng Motor Group have given their written approval for the firm to endorse a merger between Italian-American Fiat Chrysler Automobiles and French manufacturer Groupe PSA, in which Dongfeng holds a considerable stake, the Chinese carmaker said today.

Shares in the Wuhan-based firm [HKG:0489] were up 0.61 percent at HKD4.94 (64 US cents) as of 2.20 p.m.

Fiat Chrysler and PSA revealed plans for a 50-50 merger in December. Dongfeng, which had a 12.23 percent stake in PSA at the time, agreed to sell nearly 3.1 million shares -- roughly 3.1 percent of equity -- to facilitate the deal and its remaining stocks are locked up until the deal is complete.

Once the merger goes ahead, Dongfeng will hold 4.5 percent of the new company.

Editor: James Boynton
 

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Keywords:   Dongfeng,FCA,PSA Group,car-maker,merger