Fiat Chrysler, Peugeot Owner PSA in Talks to Combine -- Update

By Ben Dummett, Nick Kostov and Christina Rogers 

Fiat Chrysler Automobiles NV and Peugeot maker PSA Group of France are in talks over a potential combination, according to people familiar with the matter -- a deal that could create a $50 billion trans-Atlantic auto giant.

One possibility the two sides are discussing, according to one of these people, is an all-share merger of equals. Peugeot Chief Executive Carlos Tavares would head the combined auto maker as its CEO, while John Elkann, FCA chairman and the head of the Agnelli family, which controls the Italian-U.S. auto maker, would assume the same role at the new company, this person said.

Talks are fluid, according to one of these people, and other options or terms could be considered. There is no guarantee that any final agreement will be reached.

The proposed combination comes months after Fiat dropped an earlier offer to merge with Peugeot rival Renault SA of France. That deal fell apart after Fiat failed to win the full backing of the French government, a big Renault shareholder, and Renault's alliance partner Nissan Motor Co.

Fiat had left open the possibility of renewing talks with Renault. It had also been approached previously by Peugeot over a combination, as previously reported by The Wall Street Journal.

Write to Ben Dummett at [e-mail], Nick Kostov at [e-mail] and Christina Rogers at [e-mail]

(END) Dow Jones Newswires

October 29, 2019 14:55 ET (18:55 GMT)

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