Shares of Stellantis (MIL: STLA) are trading around 6.5% higher in Milan today after Fiat Chrysler Automobiles (FCA) and PSA Group announced the completion of their merger.
Fourth-Largest Carmaker Globally
Stellantis is officially born as a two car giants – Fiat Chrysler and Peugeot maker PSA – officially merge. The stock made its trading debut in Milan and Paris today while the same process will take place tomorrow on the New York Stock Exchange (NYSE).
“We have the scale, the resources, the diversity and the knowhow to successfully capture the opportunities of this new era in transportation,” Chairman John Elkann said.
After the merger closed, Stellantis officially became the fourth largest car manufacturer in the world with annual sales of over 8 million car units. Two companies merged to save costs and increase growth opportunities.
The management is hoping it can save more than 5 billion euros per year without closing any factories.
“I can tell you that the focus from day one will be on the value creation that is the result of the implementation of those synergies,” CEO Carlos Tavares said.
Tavares is now widely expected to present a multi-year plan to challenge Toyota and Volkswagen.
“He has proven to be the kind of person who prefers action to words, so I don’t think he will make loud statements or try to over-sell targets,” Marco Santino, a partner at consulting firm Oliver Wyman, said.
“It will be a step by step process, also to allow the market better appreciate every single move. I don’t think we will have all the details before one year.”
Technical analysis: Stock price soars
STLA stock price soared more than 6.5% today as investors rushed to grab exposure ahead of the expected recovery in car sales. The stock price officially opened at 12.758 before racing higher to 13.636.
It is likely that STLA share price will get another boost tomorrow when shares start trading on NYSE.
Shares of Stellantis are trading higher on their first trading day after Fiat Chrysler and PSA Group announced their merger is completed.
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