Merged Fiat-Chrysler could be registered in the Netherlands

Article by Anita Panait, on July 26, 2013

Sergio Marchionne, chief executive of both Fiat and Chrysler, remarked that the merged entity could be registered in the Netherlands. Doing so could be beneficial if Fiat-Chrysler would have its primary listing in the United States, since corporate rules in the Netherlands are similar to those in the U.S. Marchionne disclosed on April 29, 2013, that he would prefer that the merged Fiat-Chrysler be listed in New York.

Fiat's sister company, Fiat Industrial, is also transferring its corporate headquarters to the Netherlands following a merger with US unit CNH that should be completed in the autumn. Marchionne remarked to Reuters that Fiat would follow its sister company in registering in the Netherlands, noting that the Fiat Industrial-CNH merger "is one of the technical blueprints" for a future Fiat-Chrysler marriage.

CNH shareholders approved the merger at a meeting in Amsterdam, CNH said in a statement. The merged company will be called CNH Industrial, and will have its primary listing at New York.

Fiat is currently in discussions with VEBA to buy the trust’s 41.5-percent stake in Chrysler. Marchionne said he expected a Delaware court to issue a ruling over a price dispute with VEBA by the end of July.

The ruling will determine how much Fiat has to pay for part of the VEBA stake as well as will make clear the timetable for the full merger. Analysts expect Fiat-Chrysler to post a group trading profit of around EUR1 billion ($1.32 billion) and a net profit of EUR305 million. Fiat will report its results for the second quarter of 2013 on July 30, and will be closely watched for signs that it is curtailing losses in Europe, where demand for vehicles continues to fall. [source: Reuters]

Topics: fiat, chrysler

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