Fiat has finally reached an agreement with the UAW’s VEBA Trust to purchase the remaining 41.46 percent stake that it does not own.
Fiat will pay an overall $3.65 billion for the remaining shares. VEBA will also receive an additional $700 million paid annually over the course of four years. The deal is expected to be completed on or before January 20.
“In the life of every major organization and its people, there are defining moments that go down in the history books,” Fiat-Chrysler CEO Sergio Marchionne said. “For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments.”
The deal announced today also includes an agreement that the UAW will support Chrysler’s manufacturing operations, although statements issued by both Fiat and Chrysler didn’t specify the details of that agreement.
Late last year, Marchionne announced a plan to reinvigorate sales for Fiat as well as its Alfa Romeo and Maserati brands. By fully owning Chrysler, Fiat will gain access to cash from the American brand that will help solidify the Italian brand’s plans.
Fiat has been leaning on Chrysler to sustain profit as the European auto market continues to struggle.
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