MILAN/LONDON (Reuters) – Fiat Chrysler’s merger with Peugeot maker PSA will embody a loyalty scheme to reward long-term traders and assist stop future takeover makes an attempt, the prospectus for the deliberate tie-up reveals.
Italian-American automotivemaker Fiat Chrysler (FCA) and France’s PSA agreed to mix in a $38 billion all-share deal in December, uniting manufacturers similar to Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, Citroen and DS.
Holders of shares in Stellantis — because the merged group can be identified — for an uninterrupted interval of at the very least three years could obtain a particular voting share along with every widespread share, the businesses stated within the prospectus.
Such a transfer might make administration modifications and takeover makes an attempt of Stellantis harder, they added. The tax penalties of the loyalty scheme are unsure, the businesses stated.
Stellantis may have a Dutch-domiciled mum or dad firm and its shares can be listed in Paris, Milan and New York.
Loyalty schemes are widespread for corporations within the Netherlands and have already been utilized by Exor, the holding firm of Italy’s Agnelli household and FCA’s controlling shareholder, not least in the course of the spin-off of Ferrari, boosting Exor’s grip on the luxurious sports activities automotive maker.
PSA CEO Automotivelos Tavares will run Stellantis and can obtain a 1.7 million euro ($2.02 million) bonus upon completion of the merger.
FCA CEO Mike Manley will obtain “a recognition award with a worth equal to roughly 5 instances his annual base wage” and a money retention after the merger if sure circumstances are met.
The 2 corporations stated they’ve agreed to evaluate the potential distribution of 1 billion euros to shareholders, both by means of a dividend evenly earlier than the merger, or to be distributed afterwards by Stellantis.
PSA and FCA have filed the merger plan with antitrust authorities in 21 nations and the European Union. Up to now, they’ve obtained approval from 15 nations and a preliminary okay from Brazil which turns into remaining subsequent week.
The EU can also be anticipated to authorize the merger, sources have stated.