Fiat closes deal to take over Michigan-based Chrysler
Italian automaker completes plan to buy out U.S. giant21 January, 17:02
The transaction, worth $4.35 billion, came after more than a year of negotiations between Fiat, lead by Chief Executive Officer (CEO) Sergio Marchionne, and the United Autoworkers (UAW) healthcare trust VEBA.
Fiat was determined to acquire the 41.46% share of Chrysler that VEBA received as part of a plan in 2009 that rescued the ailing American automaker from bankruptcy and gave Fiat majority ownership.
Under the new deal, Fiat and Chrysler will together pay out $3.65 billion in cash to VEBA, while Chrysler has agreed to pay the trust an additional $700 million over the next three years.