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Fiat reaches $4.35-billion deal to acquire remaining Chrysler shares - FreePress
By Brent Snavely
January 1, 2014

On the first day of 2014, Fiat, Chrysler and the UAW’s Retiree Medical Benefits Trust agreed to a $4.35-billion deal that gives Fiat total ownership of its U.S. partner.

It resolves a bitter legal dispute over the value of Chrysler’s shares and will give the embattled Italian automaker access to Chrysler’s cash.

The agreement, which relies on $2.6 billion of Chrysler’s own money, erases the need for an initial public offering of Chrysler shares.

Fiat currently owns 58.5% of Chrysler while the UAW Trust, also known as a Voluntary Employee Beneficiary Association (VEBA) owns 41.5%. When the transaction is complete, Chrysler will no longer be an independent business. Fiat may choose to report Chrysler’s financial results separately.

CEO Sergio Marchionne has sought to merge the two companies since 2009 when Chrysler emerged from Chapter 11 bankruptcy with Fiat as its controlling shareholder...

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Interesting, I hadn't realized VEBA owned 41.5% of the company.

I guess we have to start thinking of Chrysler as a brand and Fiat as the company. They will probably start consolidating some administration as well, headquarters, etc. I'm assuming Auburn Hills is a safe place considering the quality of the infrastructure there.
 
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