The boards of Fiat Chrysler Automobiles and Peugeot maker PSA Group have nixed a planned dividend distribution in light of the coronavirus pandemic, but they say plans for their 50/50 merger remain on track.
As part of their merger announcement last year, FCA and PSA Group had said each company would issue a $1.2 billion (1.1 billion euro) ordinary dividend distribution in 2020 related to the 2019 fiscal year. But on Wednesday, they announced that the combined $2.4 billion ordinary dividend was off.
“FCA and Groupe PSA confirm that preparations for the 50/50 merger of their businesses announced in December 2019 are advancing well, including with respect to antitrust and other regulatory filings. Completion of the proposed combination is expected on schedule, before end of Q1 2021, subject to customary closing conditions,” according to a news release.
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European regulators earlier set a deadline of June 17 to announce whether they will OK the proposed merger, which would bring Jeep, Ram, Chrysler, Dodge, Fiat, Alfa Romeo and Maserati together with Peugeot, Citroen, Opel and Vauxhall.
The companies, like most automakers, have been hammered by losses connected to COVID-19. FCA announced a $1.9 billion (1.7 billion euros) loss in the first quarter of the year.
Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence.
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