Fiat said that most of its shareholders had chosen not to exercise an option that could have derailed its merger with Chrysler, Reuters reported.
It is planned to incorporate the two firms into a Dutch-registered company called Fiat Chrysler Automobiles (FCA) ahead of a US stock market listing that would help fund ambitious investment plans.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Reuters noted the plan could have failed if Fiat had been asked to pay more than EUR500m (US$657.1m) to investors who chose to sell their shares, exercising a legal right triggered by the company’s decision to move its registered offices away from Italy.
The company said shareholders opposing the deal had exercised exit rights for 60m shares – equivalent to about EUR463.6m – just shy of the EUR500m threshold set by Fiat. The 60m shares are equivalent to around 6.3% of Fiat’s EUR9.5bn share capital.
The merger is expected to be completed around the middle of October. Creditors, including bondholders, still have the right to exercise exit rights. Fiat has said it does not expect creditor opposition to stand in the way of the merger, Reuters added.
