PSA and FCA have agreed to allow the French automaker to sell 7% of Faurecia ‘s outstanding share capital prior to the completion of its merger with FCA and will ensure the new Stellantis entity will not acquire control of the supplier.
Both PSA and FCA boards signed cross-border merger terms that will apply to the combination, with the parties expecting the fusion to be completed by the end of the first quarter of 2021, subject to the customary conditions set forth in their Combination Agreement.
Both boards also agreed to permit Groupe PSA to sell up to around 7% of Faurecia ‘s outstanding share capital prior to the completion of the merger and to take such other steps (excluding additional disposals of shares) as may be necessary to ensure Stellantis will not acquire control of Faurecia , consistent with the terms of the original Combination Agreement.
This is expected to facilitate the securing of the necessary regulatory approvals in relation to the merger.
Cash proceeds from this contemplated disposal are expected to be distributed to the Stellantis shareholders along with the distribution in kind of the remaining stake in Faurecia , as already announced on 14 September, 2020, promptly after the completion of the merger and subject to approval by the Stellantis Board and shareholders.
“Both FCA and Groupe PSA also acknowledged the effective management of the Covid-19 crisis by Faurecia and the upward revision of 2020 guidance and confirmation of all targets for 2022 during [the] Q3 sales presentation,” said a joint statement from PSA and FCA.