Fiat has reached an agreement with Chrysler Group LLC and the other members of Chrysler regarding increasing its stake in the manufacturer.
Under the agreement, Fiat will exercise in full its Incremental Equity Call Option subject to and concurrently with the closing by Chrysler, in the second quarter of 2011, of a refinancing transaction in which Chrysler's US and Canadian government debt is fully repaid.
Upon completion of the transaction, Fiat's interest in Chrysler will increase by an incremental 16%.
The call option will be exercised at an aggregate price of $1,268 million.
"The transaction that we are announcing," said the chairman of Fiat John Elkann, "represents a historic step for Fiat and Chrysler and is a source of great satisfaction and pride for both.
"Fiat, together with Chrysler, will create a stronger automobile group, with a full range of products, present in every market around the world and able to compete with the best.
"Over the past couple of years, Fiat and Chrysler have worked side by side with commitment and mutual respect. With the contribution of everyone who works with us and with the full support of myself and my family, from today this spirit of collaboration will become even stronger, as we continue to produce appealing, fun, safe and eco-friendly automobiles."
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Gareth has more than 20 years’ experience as a journalist having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News.
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