Peugeot will become Stellantis, should we buy the stock?


The title of the French car manufacturer gained 8% over one year. (© PSA)

The shareholders of the French and Fiat Chrysler have given the green light to the birth of Stellantis, the world number three in the automobile industry. Discover our analysis and our advice on the Peugeot share.

It is now a matter of days.

In a little over a week, on Saturday January 16 precisely, the automotive group will officially be born. Stellantis – number three worldwide in the sector in terms of turnover and number four in volumes -, resulting from the merger of French Peugeot SA and Italian-American Fiat Chrysler.

Timeline respected

The shareholders of the two manufacturers overwhelmingly approved the terms of the union, at 99.85% for French shareholders, and even 99.99% for shareholders with double voting rights.

The timetable for the operation, announced in the fall of 2019, will have been kept. The two groups were able to defuse the fears of the competition authorities, especially in Europe. They also marginally revised the terms of the merger, including the issue of exceptional dividends paid to Fiat Chrysler shareholders.

But the initial balance of the operation at 50-50 was preserved, despite a balance of power favorable to Peugeot.

Given the higher profitability of the French group and a better stock market valuation, its shareholders could have claimed more favorable merger parities than the formula adopted of one PSA share for 1.742 FCA shares.

Many challenges

“We are



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