Fiat obtained the final 41.46 percent stake in Chrysler for $4.35 billion from the UAW Retiree Medical Benefits Trust. The trust, known as the voluntary employee beneficiary association, was paid $3.65 billion in cash for its stake in the company, $1.9 billion of which came from Chrysler while the other $1.75 billion came from Fiat.
Chrysler will also pay the UAW Trust another $700 million in four equal annual installments, the first of which will come when the deal closure is finalized.
Fiat CEO Sergio Marchionne and Fiat’s board of directors must now come up with a new name for the company, the stock exchange on which the combined companies will be listed and a location for the global headquarters. The name issue is sensitive on both sides, and Sergio has already said that it will incorporate both Fiat and Chrysler.
This ends a five year quest to merge the companies both financially and operationally. It was back in 2009 when Fiat took a controlling stake in Chrysler, after the American automaker emerged from Chapter 11 bankruptcy.
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