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MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  Fiat Chrysler Automobiles N.V.    FCA   NL0010877643

FIAT CHRYSLER AUTOMOBILES N.V.

(FCA)
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Fiat Chrysler Chairman Says Peugeot Deal on Track

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05/20/2020 | 07:56am EDT

By Jessica Sier

Fiat Chrysler Automobiles NV's Chairman John Elkann says merger plans with Peugeot SA are proceeding as envisaged, despite concerns the Italian government may impose dividend restrictions on its coronavirus-related loan package, and the deal's rationale is "stronger than ever."

"All the workstreams for the 50-50 merger project we announced between FCA and PSA, to create one of the world's leading automotive groups, are proceeding on time and as envisaged," said Mr. Elkann in a speech to the shareholders of Exor NV on Wednesday, where he is also Chief Executive of the Italian holding company belonging to the Agnelli family.

"The strategic logic of this combination for the two companies and all their employees, is stronger than ever."

Exor is the largest shareholder in Fiat Chrysler.

The comments come as Fiat Chrysler negotiates a 6.3 billion euro ($6.89 billion) credit line from the Italian government to shore up cash flow during the economic uncertainty posed by the coronavirus spread.

However, analysts speculate the state-backed loan may force the amendment of a EUR5.5 billion special dividend Fiat Chrysler agreed to pay shareholders at the close of the deal in either the first or second quarter of 2021.

"Exor stands to independently gain around EUR1 billion in special and ordinary dividend payments from the deal," said Tom Narayan, auto analyst at RBC Capital Markets.

"Any changes to the dividend could affect the merger agreement, and given Exor owns so much of the company they could have the power to block the deal."

Exor has an existing 28.9% stake in Fiat Chrysler with 42.5% voting rights, according to Exor's most recent annual report.

The Netherlands-based holding company will become the largest shareholder of the merged entity with around 14% of the capital. The Peugeot family will be the second largest shareholder.

However, there are concerns the Italian government loan program may stipulate companies must not to pay out dividends in 2020 or 2021.

According to Italian daily newspaper ll Messaggero, the state-backed loans may require guarantees of employment levels in Italy, confirmation of capital expenditure plans, as well as postponing dividend payments until the end of 2021.

"While there could be ad hoc changes with regard to the distribution of dividends, we believe there is no problem getting the loan," said Martino De Ambroggi, analyst at Equita Sim.

"We believe that this financing will be used to face the most acute phase of the crisis, but in the case of restrictive conditions we do not rule out that it can be repaid in advance by drawing on other sources of financing."

Shares in Fiat Chrysler have sunk around 45% since just before the merger was announced in December 2019, largely driven by the widespread economic damage caused by the coronavirus spread. Peugeot's stock is down more than 60% since the deal was announced.

 

Write to Jessica Sier at jessica.sier@wsj.com

 

Stocks mentioned in the article
ChangeLast1st jan.
DEERE & COMPANY 0.67% 157.9 Delayed Quote.-9.47%
EXOR N.V. -0.97% 50.8 Delayed Quote.-25.74%
FERRARI N.V. 0.13% 172.16 Delayed Quote.4.00%
FIAT CHRYSLER AUTOMOBILES N.V. -1.10% 8.9 Delayed Quote.-31.79%
PEUGEOT -2.29% 14.29 Real-time Quote.-31.34%
THE NEW HOME COMPANY INC. 0.63% 3.2 Delayed Quote.-31.33%
WORLD CO., LTD. -1.19% 1496 End-of-day quote.-44.41%
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Financials
Sales 2020 86 245 M 96 914 M 96 914 M
Net income 2020 -1 354 M -1 522 M -1 522 M
Net Debt 2020 1 333 M 1 497 M 1 497 M
P/E ratio 2020 -10,6x
Yield 2020 -
Capitalization 14 113 M 15 866 M 15 858 M
EV / Sales 2019
EV / Sales 2020 0,18x
Nbr of Employees 191 752
Free-Float 53,8%
Chart FIAT CHRYSLER AUTOMOBILES N.V.
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Fiat Chrysler Automobiles N.V. Technical Analysis Chart | MarketScreener
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Technical analysis trends FIAT CHRYSLER AUTOMOBILES
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 10,15 €
Last Close Price 9,00 €
Spread / Highest target 211%
Spread / Average Target 12,8%
Spread / Lowest Target -49,4%
EPS Revisions
Managers
NameTitle
Michael Mark Manley President, Chief Executive Officer & Director
John Jacob Philip Elkann Chairman
Richard Keith Palmer Chief Financial Officer & Executive Director
Harald J. Wester Chief Technology Officer
Andrea Agnelli Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
FIAT CHRYSLER AUTOMOBILES N.V.-31.79%15 866
FERRARI N.V.4.00%31 806
SAIC MOTOR CORPORATION LIMITED-25.12%29 533
BYD COMPANY LIMITED53.93%25 572
MARUTI SUZUKI INDIA LTD-19.27%24 026
EXOR N.V.-25.74%13 358