Italian car marque Fiat has acquired the remaining 41.46 per cent stake in Chrysler in a $4.35bn deal (£2.62bn) with VEBA Trust.
The deal will see VEBA Trust, or voluntary employee beneficiary association, which is a retiree healthcare trust affiliated with the United Auto Workers Union (UAW), receive £3.65bn in cash for the stake, of which Chrysler will supply $1.9bn, and Fiat $1.75bn. Once the deal closes later this month Chrysler will continue to pay the UAW trust another $700m over three years.
The move has ended months of negotiations between the car makers, taking Fiat CEO and chairman and CEO of Chrysler Group Sergio Marchionne’s ongoing ambition of becoming the seventh largest auto group in the world.
He called the deal a historical moment. “In the life of every major organization and its people, there are defining moments that go down in the history books. For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments.
“I will be forever grateful to the leadership team for the support and unwavering dedication shown to the integration project that today has taken its final shape.
"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, a solid and open organization that will ensure all employees a challenging and rewarding environment.”
The deal is expected to be completed by 20 January.