Talks between Fiat Chrysler and Peugeot owner PSA over a potential tie-up that could create a $50 billion car giant gathered pace on Wednesday, with one source saying a deal could be announced as early as Thursday. After ditching a proposed merger with Renault in June, Fiat Chrysler chairman John Elkann confirmed the group’s bid to pursue an alternative alliance as carmakers face huge investments in electrification, emission reduction and autonomous driving technologies. Milan-listed shares in Fiat Chrysler rallied more than 10 per cent on Wednesday, after ending up more than 7.5 per cent on Tuesday in New York. Peugeot share rose more than 6 per cent to hit their highest in more than 11 years. And a combination of PSA and Fiat Chrysler would first have to overcome a series of political, financial and governance hurdles, though it elicited an encouraging early response from the French government, a key PSA shareholder.

Source: The Irish Times October 30, 2019 07:53 UTC