Fiat Chrysler to Cut Dividend Ahead of Merger With PSA Group
14 Septiembre 2020 - 4:40PM
Noticias Dow Jones
By Eric Sylvers and Ben Dummett
Fiat Chrysler Automobiles NV and PSA Group changed the terms of
their merger to preserve cash as the two car makers shore up their
financial positions following the negative effects of the
coronavirus pandemic.
Fiat Chrysler will now pay a dividend of EUR2.9 billion to its
shareholders ahead of the closing of the merger, down from the
previously agreed EUR5.5 billion, the companies said in a joint
statement Monday.
PSA, which owns the Peugeot and Citroën brands, agreed to scrap
an agreement to spin off its 46% stake in auto parts maker Faurecia
SE ahead of the closing. Instead, the stake of publicly traded
Faurecia, which is worth about EUR2.7 billion, will be spun off
following the closing.
The companies said they are still on track to complete the deal
by the end of March.
The cut to the cash portion of the dividend comes after Fiat
Chrysler, like most of its peers, reported a second-quarter loss as
coronavirus lockdowns halted production and led to a drop in sales.
While Fiat Chrysler has abundant liquidity, in the second quarter
it burned much more cash than it had coming in.
Write to Eric Sylvers at eric.sylvers@wsj.com and Ben Dummett at
ben.dummett@wsj.com
(END) Dow Jones Newswires
September 14, 2020 17:25 ET (21:25 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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