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PARIS (Reuters) - Peugeot maker PSA
The two companies, which are set to merge into Stellantis, the world's fourth-largest carmaker, said in a joint statement that FCA
France's PSA, whose brand portfolio also includes Citroen and Opel, in turn, will postpone after the merger's closing the planned spinoff of its 46% stake in parts maker Faurecia
Faurecia's market capitalisation amounts to around 5.9 billion euros.
"Amendments preserve the balance of original combination agreement," the two groups said.
A source said on Monday that the aim of those changes was to reinforce the balance-sheet structure of both companies after the COVID-19 crisis and ensure that the merger plan is concluded as soon as possible.
Analysts had argued that such a large cash payout to FCA shareholders, led by controlling investor EXOR
Confirming last week that the deal was on track, FCA Chief Executive Mike Manley said both he and PSA CEO Carlos Tavares were aware of the need for the two firms to get to the merger with the strongest balance sheet possible as well as for shareholders to get what they expected.
FCA and PSA said annual estimated synergies from their merger were now seen over 5 billion euros, compared with an initial estimate of over 3.7 billion euros.
The two carmakers confirmed that they expected to complete their tie-up process by the end of first quarter of next year.
Both carmakers earlier this year scrapped dividend payments on 2019 results, each worth 1.1 billion euros.
(Reporting by Gilles Guillaume in Paris and Giulio Piovaccari in Milan; Editing by Valentina Za and Peter Cooney)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Tue, September 15 2020. 09:03 IST