Peugeot maker PSA Group has agreed to merge with rival Fiat Chrysler in a deal that could create a $50 billion business, The Wall Street Journal reported.
- Fiat Chrysler Chairman John Elkann is expected to be chairman and Peugeot CEO Carlos Tavares will lead the enlarged group, according to the report. Following an uptick in demand for electric vehicles, smaller automakers like Fiat have been pressured to partner up to ease of cost of making the transition. Earlier this year, Fiat explored a possible tie-up with Renault (PA:RENA), but talks fell through.
- Both U.S. and French governments have been briefed on the deal, the report said, but the potential merger is expected to face political and financial hurdles. Fiat Chrysler Automobiles (NYSE:FCAU) was up 5.77% at 3:20 p.m. ET (19:20 GMT).
