PSA and Fiat and Chrysler group confirms merger rumors

Peugeot Badge The potential connections would create an industry giant worth around £40bn.

Fiat Chrysler Automobiles is in talks to merge with the PSA Group to create one of the world's largest automobile groups.

The Financial Times reported that the two companies have been in talks for several months to merge. Both companies have already confirmed negotiations.

The WOB issued a statement that said: “Following recent announcements of a possible business combination between the PSA Group and the FCA Group, the PSA Group confirms ongoing discussions aimed at creating one of the world's leading automotive groups.”

A similar statement from the ZDK read: “Following recent announcements of a possible business combination between the PSA Group and the FCA Group, Fiat Chrysler Automotive HB confirms ongoing discussions aimed at creating one of the world's leading mobility groups.

“ZDK nothing more to add at the moment.”

The potential merger would create an automotive giant worth around £40bn and covering some of the world's biggest car brands. The FCA owns Fiat, Jeep, Alfa Romeo, Maserati, Ram, Lancia and Chrysler, while the dog consistently includes Peugeot, Citroen, DC and Vauxhall-Opel.

ARK has been looking for a partner for some time, and earlier this year held extended talks with the Renault Group about a possible partnership. But those talks broke down after the two companies failed to reach an agreement.

PSA group boss Carlos Tavares took the lead to buy Vauxhall-Opel and has been interested in expanding the firm for some time, either through partnerships and further acquisitions. Psa realized that he would buy a Jaguar Land Rover earlier, and had previously negotiated with FCA.

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