MILAN: The boards of Fiat Chrysler and PSA Peugeot have approved merging the two companies in a move that would create the world’s fourth-largest automaker with combined revenues of $188.8 billion, the companies announced Thursday.
The 50-50 merger is expected to create synergies of $4.13 billion, a figure that the automakers expect to achieve without any factory closures — a concern of unions in both France and Italy where the carmakers have more model overlap.
Once a merger is finalized, PSA Peugeot CEO Carlos Tavares will be chief executive of the new company with Fiat Chrysler Chairman John Elkann taking the role of chairman.
The automakers said that the new company would be able to meet the challenges of powertrain electrification, connectivity and autonomous driving “with speed and capital efficiency.”
The combined company will be able to share in the cost of developing those technologies with their “strong global R&D footprint,” they said. They will also save on investments in vehicle platforms and save money with greater purchasing power.
Both companies “share the conviction that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities, and manage effectively the challenges in the new era in mobility,” the statement said.
The merger decision comes about five months after a similar deal with French automaker Renault fell apart.
Fiat Chrysler, PSA Peugeot boards approve merger
Fiat Chrysler, PSA Peugeot boards approve merger
- PSA Peugeot CEO Carlos Tavares will be chief executive of the new company
- The merger is expected to create synergies of $4.13 billion
QatarEnergy announces force majeure following Iran attacks: statement
DOHA: Qatar’s state-run energy firm on Wednesday declared force majeure following attacks on two of its main facilities that halted liquefied natural gas production and as Iran pressed missile and drone attacks across the Gulf.
“Further to the announcement by QatarEnergy to stop production of liquefied natural gas and associated products, QatarEnergy has declared Force Majeure to its affected buyers,” the company said in a statement.
QatarEnergy invoked the clause, which shields it from penalties and potential breach of contract claims from clients, after stopping LNG production on Monday.
Iranian drones attacked two of the company’s main production hubs in Ras Laffan Industrial City, 80 km north of Doha and in Mesaieed 40 km south of the Qatari capital, Doha’s ministry of defense said at the time.
The Gulf state is one of the world’s top liquefied natural gas producers, alongside the US, Australia and Russia.
On Tuesday, QatarEnergy said it would halt some downstream production of some products including urea, polymers, methanol, aluminum and others.
Qatar shares the world’s largest natural gas reservoir with Iran.
QatarEnergy estimates the Gulf state’s portion of the reservoir, the North Field, holds about 10 percent of the world’s known natural gas reserves.
In recent years, Qatar has inked a series of long-term LNG deals with France’s Total, Britain’s Shell, India’s Petronet, China’s Sinopec and Italy’s Eni, among others.
