PSA DENIES FCA MERGER AT RISK FROM VIRUS FALLOUT
PSA Group said it remains committed to a merger with Fiat
Chrysler Automobiles after French media reports said the tie-up
could be threatened by economic fallout from the coronavirus
outbreak, which has sharply reduced the market capitalization of
both companies. The coronavirus fallout has called into question
the financial terms of the merger, sources who are working on the
transaction told the Paris-based Agence France-Presse news agency.
The terms of the deal, which has been described as a merger of
equals by both companies, might need to be reviewed, the French
financial daily Les Echos said.
PSA and FCA signed a memorandum of understanding in
December and said the merger could close in 12 to 18 months. Teams
in France and Italy and working on operational details and
submitting documents to relevant antitrust authorities, but they
are allowed only limited contact until the closing. The terms of
the deal agreed
