Stellantis CEO Carlos Tavares
The world's fourth largest automaker officially came into existence today.
What Happened: The $52 billion merger between Peugeot S.A. and Fiat Chrysler Automobiles NV (NYSE: FCAU), which took a year to finalize because of the COVID-19 disruption, was formally completed this morning.
The new company is called Stellantis NV, and shares will begin trading on Monday on the Euronext exchnage in Paris and the Mercato Telematico Azionario in Milan, followed by the New York Stock Exchange on Tuesday. Its ticker symbol on all three exchanges will be "STLA."
Why It Matters: The new company will have annual sales of about 8.1 million vehicles, according to Reuters.
It will be led by CEO Carlos Tavares, described by Bloomberg as "an ultra-competitive amateur rally driver who calls himself a 'performance psychopath' [with] a Darwinian view on the industry, arguing that only the strong carmakers will survive the pivot to electric drivetrains and pursuit of autonomous driving."
The new company has strengths in North America through the Ram and Jeep brands, and in Europe through the Peugeot and Citroen brands. But it has not done well in the world's biggest auto market — China. And like all traditional automakers it faces technological upheavals of the industry in the forms of electrification and autonomous driving.
Investors are waiting to hear more details on the company's plans. Tavares and Stellantis Chairman John Elkann are scheduled to hold a virtual press conference on Tuesday at 9:40 a.m., right after they ring the bell at the NYSE.
Photo courtesy PSA Group.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.