Fiat's Merger With Chrysler Effective as of Oct. 12

Oct 07, 2014 11:30 AM EDT | Matt Mercuro


Italian car maker Fiat said on Tuesday a merger with its U.S. unit Chrysler will be effective as of Oct. 12 after all conditions for the tie-up to go through have been met.

The company said the deadline was Oct. 4, according to Reuters.

No creditors had opposed the merger and the amount of money to be paid to shareholders that chose to sell their shares had not exceeded a 500-million euro cap set by the company, according to the automaker.

Fiat CEO Sergio Marchionne said to Reuters that a good benchmark for the IPO would be if the company manages to secure more volume on the NYSE than it does at Milan.

He added that he would be happy if the company obtains 4 million (share transactions) in Europe and 6 million in the U.S.

"If we do more volumes in New York than we do in Milan, that's a good benchmark," said Marchionne. He also said that in Italy the trading volumes are usually in the range of 10 million share transactions. "If that number were to go 6 million in the U.S. and 4 million in Europe I'd be happy," he said, according to Reuters.

Fiat shareholders approved the automaker's merger with Chrysler back in August, paving the way for a U.S. listing.

Fiat Chief Executive Sergio Marchionne finalized the full buyout of Chrysler earlier this year, and plans on incorporating the two as a Dutch-registered combine, Fiat Chrysler Automobiles (FCA).

FCA's headquarters is expected to be located in London, and have its tax domicile in Britain, Fiat said in a statement. This would mean a shift away from Italy, the automaker's home for 115 years.

Fiat employs 62,000 people in Italy, according to Reuters.

Shares in Fiat Chrysler Automobiles will start trading on the New York Stock Exchange on Oct. 13, Fiat said in a statement to Reuters.

Fiat was down 1.69% in recent Milan trading at 7.28 euros a share, in a 52-week range of 5.17 - 9.08, according to NASDAQ. 

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