Fiat has completed its acquisition of the remaining 41.46% stake it does not own in Chrysler Group from the UAW’s VEBA Trust (United Automobile Workers’ voluntary employee beneficiary association). Chrysler Group is now a wholly-owned subsidiary of Fiat.
The consideration for the acquisition comprised a special distribution paid by Chrysler Group of US$1.9 billion (Fiat North America directed its portion of the special distribution to the VEBA Trust as part of the purchase consideration) and a cash payment by FNA to the VEBA Trust of US$1.75 billion.
Chrysler has agreed to separately make a total of US$700 million in four equal annual payments to the UAW’s trust fund. The first was paid in connection with the closing of the transaction with Fiat.
Full Chrysler ownership will allow CEO Sergio Marchionne to create a global player to better challenge General Motors and Volkswagen. He earlier estimated that Fiat and Chrysler combined would be the world’s seventh-largest carmaker.