Stellantis jumps 11% on NYSE debut. Here is what you’ll want to know concerning the fourth largest automaker on the earth:
The logo of Stellantis, the world’s fourth largest automaker, which starts trading in Milan and Paris following the completion of the merger of Fiat Chrysler and Peugeot maker PSA, can be seen next to a car that left the main entrance of the FCA Mirafiori plant in January Turin, Italy, is issued 18, 2021.
Massimo Pinca | Reuters
Shares in Stellantis – the merged automaker of Fiat Chrysler and France-based Groupe PSA – rose more than 11% on their trading debut on the New York Stock Exchange on Tuesday.
The $ 52 billion merger closed on Saturday, and the combined company’s shares were traded under the STLA on Monday on Euronext in Paris and Borsa Italiana in Milan, Italy. Trading in US stocks under the same ticker symbol was delayed for a day as US markets closed on Monday for the Martin Luther King Jr. holiday.
Stellantis is the fourth largest automaker in the world by volume. The company, including its 400,000 employees, will primarily operate in North America and Europe.
Here’s what else you should know about the company:
Upon completion of the merger, the group’s PSA shareholders received approximately 1.7 Stellantis shares for each PSA share, while Fiat Chrysler shareholders received 1 Stellantis share for each of their shares.
In a virtual launch on the Borsa Italiana website, Carlos Tavares, CEO of Stellantis, former CEO of Groupe PSA, said the merger would add 25 billion euros ($ 30.3 billion in value to shareholders over the coming years due to projected cost reductions ) would bring.
The New York Stock Exchange welcomes Stellantis NV (NYSE: STLA) today, Tuesday, January 19, 2021 to celebrate its listing on the NYSE following the merger of Fiat Chrysler Automobiles NV and Peugeot SA. The Chairman and Carlos Tavares, Chief Executive Officer, virtually ring The Opening Bell®.
“All of our employees and management teams are fully focused on the value creation anchored in the merger of FCA-PSA and the creation of Stellantis,” he said.
The merger is expected to result in annual cost savings of around 5 billion euros or 6.1 billion US dollars, officials said.
The company’s name is rooted in the Latin verb “stello”, which means “to shine with stars”, according to the companies.
The name Stellantis is used for the umbrella company, but not for its vehicles. The company’s 14 individual car brands such as Alfa Romeo, Chrysler, Fiat, Jeep and Peugeot, which have historical significance in their respective countries, remain unchanged.
The board of directors
The Stellantis Board of Directors consists of two managing directors, Tavares and the former Fiat Chrysler Chairman, John Elkann.
Stellantis chairman John Elkann symbolically rings a bell as the shares of the merger between Fiat Chrysler and Peugeot maker PSA trade on the Italian stock exchange. This still image is from a video on January 18, 2021 in Milan.
Italian Stock Exchange | via Reuters
The company’s non-executive directors are:
- Robert Peugeot from the French car manufacturer’s Peugeot family
- Henri de Castries, former CEO of the insurer Axa SA
- Andrea Agnelli, Elkann’s cousin and a family member who controls Fiat Chrysler
- Fiona Clare Cicconi, HR manager at AstraZeneca PLC
- Nicolas Dufourcq, CEO of the French investment bank Bpifrance SA
- Ann Frances Godbehere, Director at Royal Dutch Shell PLC
- Wan Ling Martello, partner and co-founder of the private equity firm BayPine
- Jacques de Saint-Exupéry, Chairman of the PSA Workers’ Council
- Kevin Scott, Chief Technology Officer at Microsoft Corp.
– CNBC’s Elliot Smith contributed to this report.