Today marks a big occasion for Chrysler as it becomes a part of Fiat fully. The Italian automaker announced today in a statement that they have completed the purchase of Chrysler and "is now a wholly-owned subsidiary of Fiat".
This comes three weeks after an announcement made by Fiat which said they had come to an agreement with the UAW's VEBA Trust to purchase the remaining 41.46 percent of Chrysler. The agreement states that Fiat would pay $4.35 billion for the shares.
The next step for Fiat and Chrysler will take place on January 29th. That is when the board is scheduled to meet and discuss terms of the merger, including including the corporate organization, location of its headquarters, and where it would be listed on the stock market.
Press Release is on Page 2
Fiat S.p.A. Completes Acquisition of Remaining Equity Interests in Chrysler Group LLC From VEBA Trust
January 21, 2014 , Turin, Italy - Fiat S.p.A. (“Fiat”) through its wholly owned subsidiary, Fiat North America LLC (“FNA”) today completed its previously announced acquisition of all of the VEBA Trust’s membership interests in Chrysler Group LLC (“Chrysler Group”). Chrysler Group is now a wholly-owned subsidiary of Fiat. The consideration for the acquisition consisted of:
a special distribution paid by Chrysler Group on January 21, 2014 of U.S.$1,900 million (FNA directed its portion of the special distribution to the VEBA Trust as part of the purchase consideration); and
a cash payment by FNA to the VEBA Trust of U.S.$1,750 million.
Fiat funded the U.S.$1,750 million payment from available cash on hand. Chrysler Group funded the special distribution from available cash on hand.
As previously announced, contemporaneously with the transactions described above, Chrysler Group and the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (the “UAW”) entered into a memorandum of understanding under Chrysler Group’s existing collective bargaining agreements to provide for additional contributions by Chrysler Group to the VEBA Trust of an aggregate of U.S.$700 million in four equal annual installments, the first of which was paid in connection with closing of the transaction with Fiat.
As part of the transactions and as promptly as practicable, FNA and the VEBA Trust will dismiss with prejudice the proceedings before the Delaware Court of Chancery with respect to the interpretation of the call option agreement.