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Fiat To Buy Chrysler; Remaining Shares
Fiat is committed to buy out Chryslers' remaining stake of 41.5%. The Italian manufacturer will shell out 2.2 billion Pounds. The Deal is said to be critical to Alfa Romeo's future, however it will lessen Fiat's dependency over European markets.
Chief Executive at Fiat and Chrysler, Sergio Marchionne, believes the deal was a breakthrough, as it permits him to avoid a clause, which would have him sell Chrysler shares in public offering, if the deal hadn't been struck.
Fiat is considered to use Chrysler's technology quickly and gain more from their current profit. The resurrection of Alfa Romeo depends upon Chrysler know-abouts.
Marchionne says,"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how."
Veba union's pension trust was keen to sell it's shared in the open market. As both Fiat and Veba had valued the share holdings widely apart. Veba was expecting 3 billion pounds, while the Italians were offering 1.2 billion pounds for the remaining stake. The final sale amount was decided after months of haggling.
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