Fiat and Peugeot, closer to merging: shares rising on the stock market
The merger of Fiat Chrysler Automobiles (Fiat, Jeep, Dodge, Ram and Maserati) and the French PSA (Peugeot, DS Citroen and Opel) is getting closer and closer. Both companies announced yesterday the convening of a general meeting of shareholders on January 4 to give the green light to the creation of Stellantis, the new group resulting from the merger. Next Monday all the details of the content of the meeting will be known and what the shareholders of both companies will have to vote on that day.
The group that will emerge from this alliance will become the world’s fourth carmaker, behind only Volkswagen, Toyota and Renault-Nissan-Mitsubishi.
The merger was agreed between Fiat and PSA almost a year ago, in December 2019, and is close to becoming a reality, something that has been celebrated by investors:
- Fiat-Chrysler, which is listed on the New York Stock Exchange, closed yesterday with a rise of 3.83% to 15.44 dollars
- Peugeot also enjoyed a bullish session with a rise of 2.35% to 19.65 euros on the Paris Stock Exchange
Today, Peugeot was on a moderate advance of 0.4% by mid-morning.
Source: Admiral Markets MetaTrader 5. Daily CFD Fiat chart. Data range: from October 15, 2019, to November 20, 2020. Prepared on November 20, 2020, at 12 noon CET. Keep in mind that past returns do not guarantee future returns.
In the graph, we can clearly see how Fiat has already recovered everything it lost in the February-March crash due to the arrival of the coronavirus pandemic in Europe, which has severely punished the automotive sector.
In fact, so far this year the group has risen 5.11% in the stock market. In the past five years, it has only closed 2018 and 2016 with losses (-18.9% and -0.55%, respectively).
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