Report: Fiat seals the deal with Chrysler, purchases remaining stake in the Auburn Hills automaker

As if the transition didn’t appear seamless already, Fiat has just purchased their remaining balance in Chrysler in order to gain full control of the US-based automaker. The deal, reached over the new year, is a result of fund raising from trading in Milan and the purchase of a 41.5% stake in a United Autoworkers Retiree healthcare trust, partially owned by Chrysler.

How did Fiat pull this off? During the past year, their stock soared in value by 57%, and as the number three (and it’s a distant “three”) automaker in the US, Chrysler’s price tag is effectively a scant $1.75 billion for Fiat. This backdoor purchase includes a contribution of $1.9 billion from Chrysler to the trust along via a special dividend, paid in four annual installments of $700 million.

At the end of the day, Chrysler will have cost Fiat $3.7 billion since 2007, a far cry from the $36 billion Mercedes-Benz paid for the company in 1998.

– By: Sawyer Sutton

Source: Businessweek

Chris Chin

Editor-In-Chief of egmCarTech Freelance Automotive Journalist / Editor / Photographer

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