Fiat to acquire remaining Chrysler share.

Fiat has struck a deal to acquire the remaining 41.5 per cent of Chrysler that it does not currently own. It will pay around £2.2 billion for the remaining shares, having finally come to a deal to buy out the Veba union's pension trust. 

The deal is seen as a significant breakthrough for Sergio Marchionne, chief executive of Fiat and Chrysler, as it allows him to avoid a clause that would have required him to offer Chrysler shares in a public offering if an agreement hadn't been struck.

As a result, Fiat is expected to be able to draw on Chrysler's technology more swiftly, and gain more from Chrysler's current profitability, which is in stark contrast to Fiat's struggles in Europe. In particular, the revival ofAlfa Romeo is said to hinge on using Chrysler know-how.

"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how,” said Marchionne.

Veba had threatened to sell its shares on the open market rather than to Fiat, after the two sides valued its shareholding wildly differently. Fiat had offered £1.2bn, whereas Veba was demanding £3bn. The eventual sale figure follows months of wrangling.

Source:Autocar.co.uk