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Fiat-Chrysler deal 'best possible outcome' for VEBA

$4.35-billion payout comes after year of negotiations

02 January, 17:08
Fiat-Chrysler deal 'best possible outcome' for VEBA (ANSA) - New York, January 2 - Italian automaker Fiat's deal to buy the remaining stake in American carmaker Chrysler is "the best possible outcome" for VEBA and its retirees, the president of the committee that governs the United Autoworkers (UAW) healthcare trust Robert Naftaly has said in a statement. On Wednesday Fiat announced it had gained full control of Chrysler in a $4.35-billion deal after more than a year of negotiations with VEBA to acquire its 41.46% share. "This agreement is in the best interests of the trust's UAW Chrysler retiree members and their families who rely on the trust to provide vital healthcare benefits," Naftaly said.

Under the deal Fiat and Chrysler will pay out $3.65 billion in cash to VEBA, sharing the cost, while Chrysler has agreed to paying the trust an additional $700 million over the next three years.