Fiat, VESA Agree to $4.35 Billion Deal for Control of Chrysler

摘要

Fiat has hill control of Chrysler following an agreement to purchase the remaining 41.5-percent stake from VEBA, the retiree healthcare trust affiliated with the United Auto Workers. With this $4.35 billion deal, spearheaded by Fiat-Chrysler boss Sergio Marchionne, Fiat will pay the VEBA trust $1.75 billion and Chrysler will contribute $1.9 billion up front, plus an additional $700 million paid in four annual installments. The price of Fiat stock increased by as much as 16 percent following news of the agreement. And with Fiat in full control, Marchionne can move forward with his plan to bolster Fiat's struggling European arm, encourage more collaborative efforts between the Italian and American nameplates, and increase his company's global market share.