Following the first reports earlier this month, Italian car maker Fiat confirmed today that they have completed the acquisition of Chrysler Group through their North American division in a 4.34 Billion USD deal. Chrysler Group is now a wholly-owned subsidiary of Fiat.
To acquire the remaining 41.46 percent stake in Chrysler they didn’t own, Fiat paid UAW’s VEBA trust a down payment of $1,750 million from available cash on hand. Under the memorandum of understanding, Chrysler Group will provide additional contributions to the VEBA Trust of an aggregate of $700 million in four equal annual installments.
Fiat’s takeover of the entire Chrysler operation will invariably entail a series of changes in the way the car maker does business. But it is not likely to have a big effect on the production – at least not in the near future.
Chrysler does not have a fond memory of mergers and acquisitions, since their marriage with Daimler turned bad and they split on bad terms. Fiat seems like they know what they’re doing. They did a good job of revitalizing the brand when they owned only half of it. They should be able to work wonders with it all.