Italian Auto major Fiat said has completed the acquisition of US automaker Chrysler in a $ 4.35-billion (3.21 billion euros) deal. Now, the Chrysler Group is a wholly-owned subsidiary of Fiat group. The deal involved buying the remaining 41.46 percent stake in Chrysler from Veba, a fund controlled by the US autoworkers' union UAW.
After this takeover, Fiat and Chrysler together make the world's seventh biggest auto group. The new entity is comprised of the Italian manufacturer’s mass-market Fiat and Lancia brands and its upscale Alfa Romeo, Maserati and Ferrari marques, along with the U.S. company’s Chrysler and Dodge volume units and SUV producer Jeep.
Sergio Marchionne, the chief executive of both Fiat and Chrysler, said this month he was considering a possible listing on the Hong Kong or New York stock exchanges and would aim for a premium car market. When asked about financing for Fiat-Chrysler, Marchionne said that a convertible bond issue was appropriate but a final decision would be up to the board. 'We are here, ready to go, but we need money to go,' he said. A convertible bond is a type of bond that can be converted into shares in the issuing company or cash of equal value. They are often used by companies with a low credit rating but high growth potential.
The name of the merged firm and the choice of location for its headquarters will be decided at the board meeting to be held January 29.