Jan. 4 (UPI) — Fiat Chrysler and Peugeot said Monday shareholders approved a merger of the two companies to form Stellantis.
Shareholders of Italian automaker Fiat Chrysler and French manufacturer Peugeot, also known as Group PSA, approved the merger to create Stellantis at meetings Monday by an overwhelming majority, with more than 99% of votes cast in favor of it, according to a Fiat Chrysler Automobiles press release.
The companies expect to close the merger on Jan. 16, and have already received the final regulatory clearances over the last month, including from the European Commission and the European Central Bank, according to the release. Following the merger, Stellantis’ common shares will begin trading in the markets in Italy and Paris on Jan. 18 and on the New York Stock Exchange on Jan. 19.
The merger will include brands ranging from FCA’s Maserati, Jeep and Ram to Peugeot’s Citreon and Opel. It is expected to provide about $6.1 billion in annual cost savings, according to officials.
The companies announced plans for the merger to create the world’s fourth-largest automaker, with 400,000 employees and $190 billion in net sales, in late October.
In their joint announcement, the companies pledged to bring the companies together to build on growing technology capabilities to become a “world leader for a new era in sustainable mobility.”
The merger will also unite the companies brand strengths across luxury, premium, mainstream passenger car, SUV, trucks and light commercial, according to the announcement.
Stellantis will be based in the Netherlands at Fiat Chrysler headquarters, and FCA Chairman John Elkann and Peugeot CEO Carlos Tavares will maintain their roles at the new company.
When FCA and Peugeot merge, the combined automaker Stellantis, worth roughly $50 billion, will be the fourth-largest automaker worldwide behind Volkswagen, Renault-Nissan and Toyota.
Tavares called the shareholders approval of the merger “a historical moment” for the company.