Fiat Chrysler and France's PSA Group are preparing to secure shareholder approval for the long-awaited two-year merger.

According to Arabiya Net, investors will be required, in two separate meetings on Monday, to approve the merger that will form the new entity, which will be known as Stellantis, as the fourth largest automaker in The world.

executives at Fiat Chrysler and PSA expect that the merger will boost revenues, bringing them closer to Volkswagen and Toyota, as they will have resources. Bigger to compete with EV startups and tech startups, according to Bloomberg

what merging will not solve

The Stellantis will be a mix of lines and models of highly ranked cars in many regions around the world, but the two companies lack competition in the luxury car trade, or the vast auto market in China.

strengths and weaknesses

the combined company will boast an impressive presence in the lucrative North American truck and SUV sectors, thanks to the Ram and Jeep divisions of Fiat Chrysler. The revitalized Peugeot and Citroen brands have excelled in Europe and are the envy of their French rival Renault.

but both also have weaknesses. Fiat's merger with Chrysler did not improve the fortunes of the luxury Alfa Romeo and Maserati lines, while PSA's purchase of Opel made the company more dependent on the crowded and shrinking European market.

Incentives for shareholders to accept


Fiat Chrysler shareholders will receive a pre-merger dividend of 2.9 billion euros (3.6 billion dollars), and the board of directors of the two companies is also studying the possibility of distributing one billion euros to the shareholders of the merging entity after the deal.

Meanwhile, Fiat Chrysler and PSA have raised their estimate of the annual Stellantis synergy to $ 6 billion.

But the merger does not necessarily mean an improvement in the performance of the two companies, as Tesla is now richer than VW, which is making the most effort among the current companies to supply its huge fleet with electricity, General Motors has also withdrawn from many markets to focus on North America and China, while Renault and its alliance partner Nissan Motor Company are restructuring the company with ...