Analyst Note
| Richard Hilgert |Fiat Chrysler and Peugeot have agreed to amend merger terms including the special dividend to Fiat Chrysler shareholders and the spin-off of Faurecia to Peugeot shareholders. The original agreement had Fiat Chrysler paying a EUR 5.5 billion special dividend and Peugeot spinning off its 46% ownership stake in Faurecia. Under the amended agreement, Fiat Chrysler will pay a EUR 2.9 billion special dividend to alleviate the coronavirus' liquidity impact. Peugeot’s 46% ownership stake in Faurecia will be distributed to Stellantis (merged Fiat Chrysler and Peugeot) shareholders with 23% going to former Fiat Chrysler shareholders and 23% going to former Peugeot shareholders. The companies also agreed, depending on market conditions and performance, to distribute EUR 500 million to each company’s shareholders prior to closing or, alternatively, Stellantis may distribute EUR 1.0 billion to all shareholders after closing.