Fiat Seeking $10 Billion Loan to Complete Chrysler Merger

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Fiat Seeking $10 Billion Loan to Complete Chrysler Merger
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Fiat is readying a loan for as much as $10 billion to purchase the remaining 41.5 percent of Chrysler from the UAW’s retiree health-care trust.

The plan is to utilize the funds to not only complete the merger, but to refinance the two automakers’ debts. The Italian automaker is in discussions with Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc. and BNP Paribas SA in hopes of making it all work. Marchionne had confirmed that Fiat was in discussion with the banks earlier this year at the 2013 Geneva Motor Show.

While no final deal has been signed just yet, Marchionne hopes to complete the purchase by the end of the summer in order to combine the two manufacturers into a global automaker to rival the likes of General Motors and Volkswagen AG.

According to estimates, Fiat could pay as much as $3.5 billion for the remaining stake in Chrysler pending the court dispute and the price set for a portion of the shares Fiat is seeking to purchase.

[Source: Automotive News]

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  • smartacus

    Elon Musk was right?