Fiat Chrysler, PSA will sign merger agreement in coming weeks

Fiat Chrysler and PSA have informed their employees they would sign a binding merger agreement in the coming weeks.

In two independent communications through internal channels, obtained by Reuters on Tuesday, the two companies informed the employees that over 50 people were involved in the process.

FCA and PSA are in talks to finalize a merger that would create the fourth-largest automaker in the world.

Nine working groups were put into activity, led by FCA Group Treasurer and Global Head of Business Development David Ostermann, and by PSA Executive Vice President Program and Strategy Olivier Bourges, the documents included.

FCA Chairman John Elkann stated last week that he was not worried by a lawsuit from General Motors, which alleged FCA of having bribed United Auto Workers (UAW) union officials over years to corrupt the bargaining process and gain more advantages, costing General Motors billions of dollars. Elkann also said that he was sure about reaching a binding merger deal with Peugeot owner PSA by the end of 2019.