Fiat officially announced that it completed the acquisition of shares in Chrysler Group! This comes after the Italian company announced on January 1 that it struck a $4.35 billion deal to gain full control of Chrysler. For those who don’t know, Fiat bought the remaining 41.46 percent stake in Chrysler from a retiree healthcare trust affiliated with the UAW.
The trust is known as a voluntary employee beneficiary association of VEBA and has received $3.65 billion in cash for the stake. According to the press release, $1.9 billion cam from Chrysler and $1.75 billion from Fiat. Moreover, Chrysler will give UAW trust another $700 million in four equal annual installments.
“Chrysler Group made the initial payment today contemporaneously with the closing of a transaction between a wholly-owned subsidiary of Fiat and the VEBA Trust in which Chrysler Group became a wholly owned subsidiary of Fiat. Additionally, Chrysler Group paid a special distribution to its members in an aggregate amount of $1,900 million.” said the press release.