Fiat considers primary listing on NYSE after merger with Chrysler

Article by Anita Panait, on April 26, 2013

Fiat SpA may primarily trade its shares in the New York Stock Exchange following a planned merger with Chrysler Group, sources told Bloomberg News. Fiat chief executive Sergio Marchionne is assessing whether to make the switch from the Milan exchange, since the carmaker's revenue and profit center would shift to the United States following the merger.

One of the sources said that Fiat may keep Milan as a secondary listing. If such move pushes through, it could be considered as highly political and symbolic for debt-ridden Italy, which is struggling from a series of economic recessions.

Marchionne, who is also chief executive of Chrysler, plans to combine the two carmakers with an aim to create global manufacturing group that has the capacity to challenge General Motors Co. and Volkswagen. Fiat is seeking to acquire the rest of the stake in Chrysler it currently does not own. Fiat presently holds a 58.5-percent stake in Chrysler.

Chrysler has been vital in Fiat’s bid to keep earning money as it accounts for most of the Italian carmaker’s results. Fiat has been able to offset its string of losses in Europe (over EUR700 million or $908 million), thanks to Chrysler. North America accounted for around 75 percent of Fiat’s operating profit in 2012. Erich Hauser, an analyst for Credit Suisse, said that it “makes a lot of sense“ for Marchionne to list Fiat-Chrysler in the US as refinancing costs are typically lower and are not so much subject to the funding costs of sovereign bonds.

He added that carmakers tend to get higher multiples. Giuseppe Berta, a Fiat historian and business professor at Milan's Bocconi University, told Bloomberg News, Italy and Turin should understand that the old Fiat doesn't exist anymore. He noted that Fiat now has the US as its biggest market and he would be surprised if Marchionne doesn't choose the New York Stock Exchange.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Each time that Mini launches a new generation of the Countryman crossover, a John Cooper Works performance version is always expected to follow. When Mini unveiled the next-gen 2017 Mini...
by - January 18, 2017
Ford Mustang customers won’t be able to specify the V6 powerplant for the latest iteration of the carmaker’s pony car. This comes as the new 2018 Ford Mustang is saying...
by - January 18, 2017
The man sitting at the top of the performance division of Mercedes-Benz – Tobias Moers – cryptically indicated that the Mercedes-AMG GT4 could be really coming. Moers, chief executive of...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries