Fiat-Chrysler group may be registered in the Netherlands, after completion of the merger of the two automakers, said chief executive officer, Sergio Marchionne, according to Automotive News Europe.
Establishing headquarters in the Netherlands can be advantageous if the Fiat-Chrysler will opt for the main listing of its shares in the United States, as corporate regulations of the Dutch state are similar to those in the United States.
Sergio Marchionne said in late April that it would prefer that Fiat-Chrysler shares be listed primary on the stock market in New York.
Fiat Industrial, a sister company of the Italian carmaker will also move its headquarters to the Netherlands after the merger with the CNH American division, which will be completed this fall.
Fiat Industrial-CNH Merger “is one of the technical blueprints” for the future Fiat-Chrysler merger, Marchionne said.
CNH shareholders approved the merger with Fiat Industrial at a meeting in Amsterdam. The new company will be called CNH Industrial and will have its primary stock market in New York, instead of Milan.
Fiat discusses with a minority shareholder in Chrysler, VEBA, to purchase a stake of 41.5% of the shares not yet held by the car manufacturer. Marchionne expects a Delaware court to make a decision in a dispute with VEBA pricing by the end of July.
The decision will eliminate uncertainties regarding the price that Fiat will pay for the Chrysler stake held by VEBA and will bring some clarification to the merger program.
Fiat’s earnings will be made public by the end of July. Analysts forecast a trading profit for the Fiat-Chrysler group of around 1 billion euros ($1.32 billion), similar to the previous year figures. The net profit would be around 305 million euros ($403 million).
Fiat is losing money on the European market due to falling demand for cars. The Italian carmaker plans to build in Italy Alfa Romeo cars for export to better compete with German BMW and Mercedes high-end models.
Reply