# PSA and Fiat Chrysler approve merger, Dongfeng stake reduced

PSA's board approved a binding memorandum of understanding for a $50 billion merger with Fiat Chrysler Automobiles. Dongfeng Motor's stake in the combined entity will be reduced to about 4.5% from its current 12.2% in PSA. FCA's robot unit Comau will remain within the combined group.

- Type: Acquisition
- Announced: 2019-12-17
- Value: $50.0B
- Status: announced
- Products: automobiles
- Sectors: [Automotive Components](https://endata.com/sectors/automotive-components.md)

## Companies

- [Fiat Chrysler Automobiles](https://endata.com/companies/14862.md)
- [PSA Group](https://endata.com/companies/19914.md)
- [Dongfeng Motor](https://endata.com/companies/3392.md) (investor)
- [Fiat Chrysler Automobiles](https://endata.com/companies/14862.md) (target)

## Sources

- [brecorder.com](https://www.brecorder.com/news/554018/dongfeng-to-reduce-psa-stake-in-merger-deal-with-fiat), 2019-12-17: "The board of PSA approved a binding memorandum of understanding for a $50 billion tie-up between the two groups."
- [cnn.com](https://www.cnn.com/2019/12/18/business/fiat-chrysler-peugeot), 2019-12-18: "Fiat Chrysler and Peugeot owner PSA Group have signed a binding merger agreement, solidifying a nearly $50 billion deal that will create the world's third largest automaker."

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Data from Endata (https://endata.com/). Announcements are summarized from public sources and may be incomplete; check the linked originals.