FCA-PSA merger, agreement on maxi-dividend and assets revised

The coupon drops from 5.5 to 2.9 billion. Faurecia (components) remains within Stellantis and is distributed to the two partners. The Stock Exchange rewards the title of the Italian-American group

FCA and PSA review part of the agreement for the creation of the fourth world automotive group, Stellantis, resulting from the equal merger of the two partners. In particular, Fiat Chrysler and Peugeot modify the part concerning the maxi dividend of 5.5 billion that was provided for in the preliminary agreement, the so-called combination agreement, signed last December 17th. The reason for the novelty, according to what we read in the joint note of the two auto groups, comes from the analysis of the impact of the coronavirus pandemic on the automotive industry in terms of liquidity.

what changes

The new agreement provides for a dividend of 2.9 billion to be distributed to FCA shareholders (instead of the 5.5 initially planned, as mentioned). A second big news concerns Faurecia, a component group currently controlled by Psa which holds 46% and whose capitalization is 5.867 billion. For Faurecia there was the project of spin off, that is the actions necessary to make an independent company, for the subsequent sale. In reality, the first version of the agreement provided for the distribution of its stake to PSA shareholders. Now, however, Faurecia will remain under the control of Stellantis and will be distributed, 23% each, to FCA and PSA shareholders. In addition, the payment of a dividend of 500 million euros to the shareholders of each company or, alternatively, the distribution of one billion to all the shareholders of Stellantis will be assessed before the merger is concluded. closing happened. However, the decision on the extra dividend will be made by evaluating the market trend and the prospects.


In the joint note from Psa and FCA, in addition to confirming all the other aspects contained in the combination agreement, the two companies reaffirm the timing of the merger which will be completed by the first quarter of 2021. Instead, the estimated annual savings that will be obtained with synergies increase from 3.7 billion to over five. However, there is an independent variable that should not be underestimated. The European Antitrust has extended the deadline for closing the investigation concerning competition on commercial vehicles up to 3.5 tons until 13 November; Brussels wants to understand if the new group could have a dominant position on the van market, in contrast with competition rules.

FCA and Psa well on the stock exchange

“With this new decisive step, we are approaching our goal overall in the best possible conditions,” said Carlos Tavares, CEO of Psa and CEO of Stellantis (John Elkann will be president). “Today’s announcement – said Mike Manley, CEO of FCA – is a further strong signal of the common determination to ensure that Stellantis has all the resources it needs”. The announcement of the change in the agreement is rewarding in the FCA stock exchange whose stock, on Tuesday at lunchtime in Piazza Affari, marks a rise of 10.2%, while Psa on the Paris market gains 2.8%. Financial analysts are looking with interest at the possibility of an additional dividend of 500 million per shareholderclosing, or a billion post-merger.


PSA and FCA change the terms of the merger. The reason is coronavirus

Car manufacturers FCA and PSA continue to count on their merger. However, the coronavirus pandemic forced both partners to change the fusion conditions.

French carmaker PSA and Italian-American Fiat Chrysler (FCA) have modified the terms of their planned merger. The changes aim to maintain more cash and reduce costs more during the ongoing coronavirus crisis. The companies announced this in today’s statement. The merged company will be called Stellantis and is set to be the fourth largest carmaker in the world after Volkswagen, Toyota and Renault-Nissan.

The FCA will reduce the cash part of the special dividend of 5.5 billion euros, which is to be received by the company’s shareholders under the terms of the agreement signed last year, to 2.9 billion euros (CZK 77.3 billion). PSA will then delay the planned distribution of its 46 percent stake in component manufacturer Faurecia to shareholders in the new group. Faurecia’s market capitalization now stands at 5.9 billion euros.

An informed source told Reuters that the aim of these changes is to strengthen the balance sheet structure of both companies after the coronavirus crisis and to ensure that the planned merger is completed as soon as possible.

Analysts warn that paying such high cash to FCA shareholders, led by controlling investor EXOR, the holding company of the Italian Agnelli family, could weaken the new carmaker’s finances as the automotive industry pays a high price for this year’s coronavirus epidemic.

FCA and PSA now expect annual savings from their merger of more than five billion euros instead of the original more than 3.7 billion euros. Both carmakers have also confirmed that they expect the entire merger process to be completed in the first quarter of next year.

The companies agreed on a merger worth USD 50 billion (CZK 1.2 trillion) in December 2019. The agreement brings together the brands of the French group Peugeot, Citroën, Opel and DS with the brands Fiat, Chrysler, Jeep, Dodge, Maserati, Alfa Romeo and Ram . The combined sales of the merged group should reach approximately 8.7 million cars and sales of almost 170 billion euros.


RAM 1500 TRX is officially headed to Europe!

The information was confirmed by the official importer of Dodge and RAM cars to European markets

When we wrote about the new powerful RAM 1500 TRX pick-up, we didn’t even have the courage to speculate on whether it would look to Europe as well. After all, even Ford, the main competitor, does not officially import the powerful F-150 Raptor pick-up to Europe. And unfortunately he’s not even going here with Bronc yet. But RAM is bolder.

AEC Europe, the FCA’s official importer for RAM and Dodge cars in Europe, has openly stated that it intends to bring the RAM 1500 RTX to the old continent. “We have a very optimistic outlook for RAM 1500 RTX sales,“Said John RF Muratori, Chief Operating Officer of AEC Europe, in an official press release.

This is due to the ever-increasing demand for high-performance pickups in Europe, which is why we expect the popularity of this unique RAM series model. The 1500 TRX RAM will be tested to ensure compliance with EU regulations, and deliveries are expected to begin in early December 2020.

AEC Europe is now working to meet the necessary tests, possibly making the necessary adjustments so that the car can be officially imported. Distribution will then be provided by 125 AEC Europe contract partners across Europe.

The selling price of RAM 1500 TRX on the European market is very difficult to predict, but it will definitely not be a popular. After all, even on the American market, the base will be $ 69,995 (approximately CZK 1,532,000). Not to mention the extensive optional equipment from the MOPAR workshop, which will be difficult to resist.

But if you don’t have a deep pocket and you want to give yourself a unique Christmas present, you have a truly unique opportunity. The RAM 1500 TRX is equipped with a 6.2-liter supercharged engine, which offers a maximum output of 523 kW (712 hp) and 880 Nm of torque.

He starts at 96 km / h in 4.6 seconds, manages a sprint for a quarter of a mile in 12.9 seconds (with a speed of 174 km / h) and his maximum speed is 190 km / h. Thanks to the robust chassis with new components and Bilstein shock absorbers, the RTX also promises great wilderness in the field.


Bundesliga: Augsburg boss drills fingers deep in the wound of the competition

Bundesliga Sharp criticism

Augsburg’s president drills fingers deep in the wound of the other clubs

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Augsburg’s President Klaus Hofmann is known as a strong opinion boss. The upheavals among Bundesliga competitors due to the Corona crisis are a thorn in his side. He feels “like in the wrong movie”

DAccording to Klaus Hofmann, FC Augsburg is economically surviving this season without any existential problems. With a view to the competition in the Bundesliga, the club president called for “drastic changes” to the financial rules.

“If there are professional clubs that are no longer liquid at the end of May and therefore basically only financed for a month, that is no longer acceptable,” he told the “Augsburger Allgemeine” at the weekend. “If you read that one or the other club has already ceded its future television revenue, ie pledged it, then you can speak a bit of distortion of competition.”

Because of the compulsory stop due to the effects of the corona pandemic, all clubs are currently lacking TV and viewer revenues, and some teams are in acute economic imbalance. The FCA can look more optimistically into the future thanks to sound business practices and reserves built up in recent years, said Hofmann – even with a worst-case scenario. “If the 2019/2020 season did not end, which is currently not up for discussion, the FCA would survive,” clarified Hofmann. He did not rule out a capital increase.

Hofmann wants to go “another way” with Augsburg

Augsburg’s managing director Michael Ströll had previously reassured all employees and players that there would initially be no insolvency in the next few weeks. “If we don’t play until the end of June, we as FCA are not at risk of bankruptcy, but the situation would also get worse for us,” he said.

However, if the game is dormant for longer, it could be financially critical for the Swabians. “If there was no income even beyond June, it would probably only be a matter of time for many clubs before they can no longer pay. We would also be no exception, ”said Ströll.

However, his boss, known as a strong-minded entrepreneur (fire protection) and club president, criticized the use of short-time work for rich Bundesliga rivals in this context.

“When I read that football clubs with a turnover of a few hundred million euros send their office employees on a short-time basis, I feel like I’m in the wrong movie,” he said. Among others, Eintracht Frankfurt, Schalke 04 or VfL Wolfsburg had registered short-time work for employees.

The 52-year-old wants to go “another way” with the FCA, “without having to resort to government support immediately,” he said. “We have worked out so many strategic projects in the office that we can now work through and advance in this football-free period. Everyone will be busy there, ”said Hofmann.

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The FCA has not yet used the short-time allowance itself – a possible waiver of the player’s salary is currently being discussed. In addition to their rudimentary training, the professionals have recently also been involved in some of the association’s aid and donation campaigns.

Hofmann believes that the Bundesliga will become more attractive to players in the crisis. Professionals should “be able to trust that they will get their money even if they sign contracts in Germany. Take a look at Italy and Spain, where player salaries are sometimes cut by 70 percent so that clubs can survive. There will certainly be a lot of players licking their fingers if they are allowed to play in the Bundesliga, ”he said. “Germany will be a very attractive target for professional footballers for the next one, two, three years.”

The contracts for these Bundesliga professionals expire

The contracts of numerous Bundesliga professionals expire on June 30. It is still unclear what will happen to these players in the event of a possible season extension due to the corona crisis in July. Prominent names such as Mario Götze and Charles Aranguiz are also affected.

Hofmann does not expect major changes in the squad for the Bundesliga teams. “I believe that there will be no major upheavals in the squad in the summer, but only selective adjustments. The players who have a contract in the Bundesliga want to keep it, they won’t get a better one, ”he said. “It will probably be the same at FC Augsburg.”

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FCA, Ford and GM will produce medical supplies in the face of the health crisis

On Tuesday, the Ford Motor Company said it would join forces with some of its suppliers to provide its manufacturing and engineering services with the goal of expanding production of medical equipment.

Ford and GE Healthcare, for example, are developing a simplified design that Ford could start manufacturing at one of its plants. The plan now is to get the new design quickly approved by the Food and Drug Administration, Tom Westrick, vice president and chief quality officer for GE Healthcare, said in a conference call.

Furthermore, Ford will work with 3M to increase the manufacturing capacity of its air-purifying respirators and respond to the demand for emergency and healthcare workers, while developing a simplified design that could manufacture a plant in Michigan. .

The American manufacturer also said it will use its 3D printing capabilities, which it traditionally uses to prototype components, to produce parts that can be used in equipment manufacturing.

Last week, and after announcing the closure of all its plants in North America to reduce the risk of contagion of Coronavirus Covid-19 among its employees, General Motors announced an alliance with Ventec Life Systems, to increase the production of products for the care of the respiratory tract.

“With GM’s help, Ventec will increase fan production,” said Chris Kiple, CEO of Ventec Life Systems, in a statement. “Drawing on their experience, we are confident that this will allow us to get more ventilators to hospitals much faster,” he added.

Most of these efforts are being coordinated from the companies’ corporations in the United States, where there are already 54,810 confirmed cases and 781 deaths. In Mexico, there are 405 cases and five deaths, according to data from the governments of both countries.

With information from Reuters


FCA sets the deadline for trading venues to comply with the Mifid II data rules

The City watchdog gave London trading venues a tight deadline to make stock market information free for the public, as regulators continue to struggle for the cost and accessibility of key market data.

The Financial Conduct Authority wrote to companies and organized briefings to ensure that companies are in step with the specific data rules outlined in the European Union Markets Directive revised by the European Union, according to people who are familiar with the issue and the documents reviewed by Financial news.

Mifid II requires trading venues – including those operated by stock exchanges and banks – to publish price data after each share negotiation and to offer this information to the public free of charge 15 minutes later. The rules aim to open up markets to non-professional investors, but two years after the entry into force of Mifid II, regulators remain concerned that some companies are still non-compliant.

In its letter, the FCA stated to the trading venues that they had until March 31 to demonstrate that they were making pre and post-trade data available in a format that can be easily read by computers and that this is offered free of charge for at least 24 hours after publication. The regulator also asked how long it takes investors to access data on companies’ websites.

The FCA has not provided any indication in its letter of repercussions for companies that were not yet compliant at the end of March, but the regulator has the power to sanction those it believes in violation of the Mifid II rules.

His speech underscores the ongoing struggle across the EU to enforce the vast data requirements contained in Mifid II.

In a document published by the European Securities and Markets Authority in December as part of the Mifid II review process, the EU regulatory authority said it still receives “many questions and complaints from traders. market “on the application of the rules relating to free data.

The European Commission launched its official review of Mifid II last week and will consult the financial services industry on a number of proposed changes to the regulation over the next two months. A particular area of ​​concern for Esma has been the sector’s inability to move forward with the creation of a so-called consolidated tape, an electronic and real-time collection of stock trading records in Europe.

EU authorities also continue to monitor exchanges on the amount charged to banks and investment managers for market data, data generated by the purchases and sales of these companies.

The quality of the data received by Esma under the broader Mifid II rules on commercial reporting, both on the equity and bond markets, has been questioned on several occasions in the past two years.

To contact the author of this story with feedback or news, send an email to Samuel Agini