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Fiat closes deal to take over Michigan-based Chrysler

Italian automaker completes plan to buy out U.S. giant

21 January, 17:02
Fiat closes deal to take over Michigan-based Chrysler (ANSA) - Turin, January 21 - Turin-based Fiat Group on Tuesday finalized the deal to take full possession of Michigan-based Chrysler, part of a larger plan to merge the two and create a global auto giant.

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.