Registered office in the Netherlands, tax residence in the United Kingdom and listing on Wall Street, as well as in Milan, by the end of the year. As for the name, there are no surprises: the new company born from the merger of the Turin company with the Detroit giant will be called Fiat Chrysler Automobiles (Fca). The board of directors of the Lingotto officially decided this today, after announcing it in the morning accounts for 2013 and forecasts for 2014.
MARCHIONNE: SOLID FOUNDATIONS FOR A GLOBAL MANUFACTURER
“Today is one of the most important days of my career at Fiat and Chrysler – commented the managing director, Sergio Marchionne -. Five years ago we began to cultivate a dream of global industrial cooperation, but also a great dream of cultural integration at all levels. We have worked stubbornly and tirelessly on this project to transform differences into strengths and to break down nationalistic and cultural barriers. We can now say that we have succeeded in creating solid foundations for a global car manufacturer with a wealth of experience and skills on a par with the best competitors. The adoption of an international governance structure and the envisaged listings, which will improve the group's access to global markets with clear financial advantages, will complete this project”.
TAX OFFICE IN LONDON
The tax office in the United Kingdom – in all likelihood in London – will translate into a significant economic advantage for the group, since English legislation guarantees certain advantages to those who accrue dividends abroad.
REGISTERED OFFICE IN AMSTERDAM
The legal residence in Amsterdam, on the other hand, will give the Agnelli family the opportunity to take advantage of the Dutch legislation which grants greater weight in the meeting to shareholders with the highest share of a company in their pocket. Therefore, the risks associated with the Italian laws on takeover bids do not exist.
LISTING IN NEW YORK
Lastly, the IPO in New York aims to exploit the superior liquidity of the US market. As already happened for CNH, the group's secondary listing will remain on Piazza Affari. The proposal approved by the Fiat board provides that Fiat shareholders receive one newly issued FCA share for each Fiat share held.
ELKANN: A NEW CHAPTER OF OUR HISTORY BEGINS
“The birth of Fiat Chrysler Automobiles marks the beginning of a new chapter in our history – said John Elkann, president of Fiat -. The journey that began more than ten years ago with the search for solutions that would ensure Fiat its place in an increasingly complex market has culminated in the union of two organisations, each with a great history in the automotive landscape, but with characteristics and different and complementary geographic strengths. FCA allows us to face the future with renewed motivation and energy".
“NO IMPACT ON EMPLOYMENT LEVELS”
From an organizational point of view, Lingotto informs that all the activities of Fiat Chrysler Automobiles “will continue their mission, naturally including the production plants in Italy and in the rest of the world, and there will be no impact on employment levels. The current organization in four operating regions will continue to be the backbone of the new company”. Furthermore, at the beginning of May 2014, the group will present a long-term strategic plan to the financial community.
MARKET DISAPPOINTED BY NUMBERS
As for the numbers released this morning, disappointed the market (especially since no dividends will be distributed this year), to the point that in the early afternoon the Fiat stock on the Stock Exchange (-5% at 14pm) was suspended downwards for the second time in the session. In the last month's average, in any case, the Lingotto shares still gain more than 22 percentage points.
CHRYSLER GROUP ANNOUNCES REFINANCING
Meanwhile, Chrysler Group announced a $2,7 billion senior covered bond offering. The Detroit giant also plans to start the process for placing senior secured term loan facilities on the market for a total amount of up to $2 billion. The group intends to use the net proceeds from the bond offering and the loans to fully repay the unsecured bond loan issued to the Veba Trust on 10 June 2009.
