Groupe PSA, the automaker that has agreed to a 50/50 merger with Fiat Chrysler Automobiles (FCA), announced today that it was repurchasing 10 million common shares of Peugeot S.A. (PSA Shares) from Dongfeng Motor Group (DFG). The acquired PSA Shares representing approximately 1.10% of the share capital of Peugeot S.A., will be canceled after the settlement of the transaction which is scheduled to take on September 25th, 2020.
In addition, subject to final approval by the Board of DFG, Groupe PSA and DFG have agreed to amend the Share Repurchase Agreement in force among them to provide that the remaining 20.7 million PSA Shares to be sold pursuant to the Share Repurchase Agreement will be sold by DFG to Groupe PSA by December 31st, 2020 or, if not sold to Groupe PSA by that date, to third parties by the end of 2022.
The transaction is consistent with the announcement made last year on December 18th, 2019 at the announcement of the agreed intentions to merge both FCA and Groupe PSA. The joint company will be called STELLANTIS, and create the 4th largest global automaker by volume in the industry. Both companies have amended their initial agreement this past week and are looking for the merger to be completed by the end of the first quarter of 2021.
Source: FCA/Groupe PSA