In the PSA denied rumors about cancellation of merger with Fiat

В PSA опровергли слухи об отмене объединения с Fiat

Makers PSA Group and Fiat-Chrysler has announced the beginning of the discussion of a possible merger back in October of last year, and in December, it signed a Memorandum of understanding.

The epidemic of the coronavirus, meanwhile, in recent weeks has led to major changes in the global economic environment.

Against this background, there is active rumors that the terms of the deal between the two companies (both of them have already suspended a number of plants) can be revised: the Union alleged was under threat of cancellation.

According to some sources, the parties decided to freeze the merger process is due under the terms of the transaction scale of payments, the amount of which reaches $ 6 billion.

And in the current environment of widespread suspension of production, closing of dealerships and the price drop the future payments could put the company on the brink of ruin.

However, in PSA, according to Automotive News, are not going to abandon the plans and called these rumors “inappropriate speculation” on the background of developing events.

According to the French side of the transaction, the pooling of efforts in the current situation is of particular importance.

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