Fourth-largest car company floats on Milan and Paris stock exchanges

PA

Stellantis, the car company combining PSA Peugeot and Fiat Chrysler, was launched on the Milan and Paris stock exchanges, giving life to the fourth-largest car company in the world.

Stellantis shares rose 2.5% in Milan in early trading to 13.18 euros (15.91 US dollars), recovering losses to Fiat Chrysler from Friday.

Chief executive Carlos Tavares said during a virtual bell-ringing ceremony that the merger creates 25 billion euros in shareholder value.

“The focus from day one will be on value creation from synergies, which will increase competitiveness vis-a-vis its peers,” Mr Tavares said.

Stellantis will launch on the New York Stock Exchange on Tuesday, due to the Monday US bank holiday, followed by a press conference with Mr Tavares.

Chairman John Elkann, heir to the Fiat-founding Agnelli family, said that the new company has “the scale, the resources, the diversity and the knowledge to successfully capture the opportunities of this new era in transportation”.

The technological shift includes electrified powertrains as well as moves toward greater autonomous driving.

The merger is aimed at creating five billion euros in annual savings.

The new company will have the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan.

Fiat Chrysler, which was created from the merger of the Italian and US car companies in 2014, closed Friday down 4.35% at 12.57 euros, having gained in previous days.

Its closing market capitalisation was under 20 billion euros, far off its 2018 highs of more than 30 billion euros.

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