Fiat debt to be highest amongst EU rivals post-Chrysler buy
Citigroup report also indicates concern over debt sustainability02 January, 18:25
(ANSA) - New York, January 2 - Fiat's debt levels will top the rankings amongst European carmakers after the completion of its purchase of the outstanding stake it doesn't already own in Chrysler, according to a Citigroup report.
"The group's net debt will rise to 10 billion euros once the transaction is completed," Citigroup said. "We continue to have concerns about the sustainability of the debt levels, it added. Italian carmaker Fiat announced it had gained full control of American carmaker Chrysler in a $4.35-billion deal. Italy's largest vehicle producer on Wednesday announced it had gained full control of Chrysler after more than a year of negotiations with VEBA, a healthcare trust associated with the United Auto Workers union, to acquire the remaining 41.46% share of the company. In exchange, Fiat and Chrysler will pay out $3.65 billion in cash to VEBA, sharing the cost evenly, while Chrysler has agreed to paying it over the next three years an additional $700 million.