Fiat has recently announced that they have come to an agreement with the UAW to acquire all of the VEBA Trusts equity interest in Chrysler Group LLC.
According to the agreement, Fiat will purchase the remaining 41.4616% stake of Chrysler for an amount of $3.65 (approx 2.65) billion. The payment will be broken up into two parts and the money will be paid from available cash on hand. The deal also calls for Chrysler to provide additional contributions to the VEBA Trust in four equal annual installments totaling $700 (approx 508) million.
In a statement, Fiat and Chrysler CEO Sergio Marchionne said that in the life of every major organization and its people, there are certain defining moments that go down in the history books and for Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments.
He further added that the unified ownership structure will now allow them to fully execute their vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment.
The transaction is expected to close on or before 20th January.
