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March 11, 2020

PSA chairman staying on till FCA merger

Louis Gallois has agreed, with board members, to remain chairman of the Peugeot SA supervisory board until PSA and FCA are merged.

By Olly Wehring

Louis Gallois has agreed, with board members, to remain chairman of the Peugeot SA supervisory board until PSA and FCA are merged.

The combination [merger] agreement between PSA and FCA groups was signed on 17 December, 2019.

PSA said Gallois had agreed to remain in post "in order to ensure continuity until the closing of the merger between the two companies".

When re-elected at the annual shareholders' meeting on 24 April, 2018, Gallois had indicated that, due to his age, he would serve as chairman of the Peugeot supervisory board for no more than two more years (four were planned) or until the end of the 2020 shareholders' meeting.

Confirming the merger late last year, FCA and PSA said the new combined automaker would have the management, resources and scale to be at the "forefront of a new era of sustainable mobility".

The combined company would be the fourth largest global OEM by volume and third by revenue with annual sales of 8.7m units and combined revenue of nearly EUR170bn.

The merger would deliver approximately EUR3.7bn estimated annual run-rate synergies with no plant closures resulting from the deal.

Synergies were expected to be net cash flow positive eventually.

The industrial rational was for the bigger combined company to leverage investment efficiency across a larger scale for market solutions and technologies in new energy vehicles, autonomous driving and connectivity.

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