-=Fiat Chrysler (FCAU) reported earnings on Thur 31 Oct 19 (b/o)

Fiat Chrysler and Groupe PSA to join together in merger of equals
Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders. In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency.

• The combination would create the 4th largest global OEM in terms of annual unit sales (8.7m vehicles)
  At its inception, the combined company would realize among the highest margins in the markets where it would operate, based on FCA's strength in North America and
• Latin America and Groupe PSA's in Europe
  The combination would unite the groups' respective brand strengths across Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial -- making them stronger together
• The merged entity would bring together the companies' extensive and growing capabilities in the technologies shaping the new era of sustainable mobility, including electrified powertrain, autonomous driving and digital connectivity
• Approximately 3.7 billion estimated annual run-rate synergies without any plant closures resulting from the transaction
• Highly respected combined management team recognised for exceptional value creation and with proven success in previous OEM combinations
• Dutch parent company Board would have balanced representation and a majority of independent Directors. John Elkann as Chairman and Carlos Tavares as CEO and member of the Board

Here are more merger details:

• Brands: FCA‘s portfolio includes Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Ram, and Maserati, while PSA brings Peugeot, Citroën, DS, Opel, and Vauxhall to the table.
• Size: The two companies together sold 8.7 million vehicles last year, with revenues of just under $190 billion. Employees of the two businesses total an estimated 410,000.
• Leadership: PSA’s Carlos Tavares will be the CEO of the newly combined company for the first five years. John Elkann, FCA’s chairman and American-born heir to the Italian family that founded Fiat, will be its chairman.
• Financials: The shareholders of FCA and PSA will each own 50% of the equity of the new entity.

Fiat completed its acquisition of Chrysler in 2014. It first took control of the beleaguered American car company in 2009. (That wasn’t the first time Chrysler experienced foreign ownership; Daimler-Benz bought it in 1998.)

Fiat Chrysler beats by EUR 0.01, misses on revs; reaffirms FY19 EPS guidance; merging with Peugeot

Reports Q3 (Sep) earnings of 0.81 per share, excluding non-recurring items, 0.01 better than the S&P Capital IQ Consensus of 0.80; revenues fell 1.0% year/year to 27.32 bln vs the 27.62 bln S&P Capital IQ Consensus. Record Adjusted EBIT of 2.0 billion for both the Group and North America, with record margins of 7.2% and 10.6%, respectively Worldwide combined shipments of 1,059 thousand units, down 9%, primarily due to continued dealer stock discipline in North America. Record North America results, with Adjusted EBIT of 2.0 billion, margin at 10.6%, up 40 bps

Co reaffirms guidance for FY19, sees EPS of at least EUR 2.70 vs. 2.67 S&P Capital IQ Consensus.

Announced merger of equals with Peugot this morning. The proposed combination would create the 4th largest global OEM in terms of unit sales (8.7 million vehicles), with combined revenues of nearly 170 billion1 and recurring operating profit of over 11 billion2 on a simple aggregated basis of 2018 results excluding Magneti Marelli and Faurecia.