Fiat on Tuesday (21 January, 2014), through subsidiary Fiat North America (FNA), completed its previously announced acquisition of all of the VEBA Trust’s interests in Chrysler Group which is now a wholly-owned subsidiary of the Italian automaker.
Payment consisted of a special distribution paid by Chrysler Group of US$1.9bn (FNA 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 $1.75bn.
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Both automakers funded their share from available cash to hand.
As previously announced, Chrysler and the UAW entered into a memorandum of understanding under Chrysler Group’s existing collective bargaining agreements to provide for additional contributions by Chrysler to the VEBA Trust of $700m in four equal annual installments, the first of which was paid in connection with closing of the transaction with Fiat.
“As part of the transactions and as promptly as practicable, FNA and the VEBA Trust will dismiss with prejudice the proceedings before the Delaware Court of Chancery with respect to the interpretation of the call option agreement,” Fiat said in a statement.
