Will the Fiat-Chrysler/PSA mega-merger work?

Fiat Chrysler and Peugeot’s owner PSA are tying the knot to tackle the structural upheaval in the car industry. Matthew Partridge reports.

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This week saw a deal that will "reshape the car industry as it undergoes a period of transformation", says Michael Pooler in the Financial Times. Fiat Chrysler and France's PSA, the owner of Peugeot, have agreed to create "the world's fourth-largest carmaker by output".PSA's and FCA's shareholders will each take a half-stake in the new company, which will boast combined sales of €170bn and be valued at €41.4bn. It will have a 400,000-strong workforce and total vehicle sales of 8.7 million. The merged entity will sell a portfolio of brands "covering the luxury, premium and mainstream passenger car segments" and is expected to get around 90% of its revenue from Europe and North America.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri