If you can’t work things out with one French automaker, there’s always another. Fiat Chrysler Automobiles (FCA) and the PSA Group have announced an agreement to merge in a 50:50 deal, one that will see the creation of the world’s fourth-largest automaker. In a joint statement, both companies said that they will finalise the discussions to reach a binding agreement in the coming weeks.

The merger would create an entity with a combined sales volume of 8.7 million vehicles and a revenue of nearly €170 billion (RM792 billion), taking the fight to the Volkswagen Group on the continent. Each company will hold a 50% stake in the new entity, which will list its shares in New York, Paris and Milan, and as reported earlier, PSA CEO Carlos Tavares will lead the combined automaker as CEO while FCA chairman John Elkann will assume the role of chairman.

The automakers said that the combined entity will be able to leverage its strong global R&D footprint and ecosystem to foster innovation and meet the new challenges in connected, electrified, shared and autonomous mobility with better speed and capital efficiency.

With the move, FCA, created from a marriage between Italy’s Fiat and America’s Chrysler – which was part of an unsuccessful marriage with Daimler – looks set to fulfil the merger dreams of its former CEO, the late Sergio Marchionne, who was a firm believer of combining strengths for cost savings and scale.

The tie-up with PSA is FCA’s second attempt at a merger this year. Six months ago, it set out to attempt the same with Renault, but negotiations fell through and FCA withdrew its offer for a merger in June. Unlike the soapbox drama of the previous episode, the talks this time around have been much quieter and ultimately, fruitful.