Fiat finalizes acquisition of Chrysler
On Tuesday, January 21, Fiat S.p.A (Fiat) published a press release announcing that it had completed the $4.35 billion acquisition of Chrysler Group LLC.
According to The New York Times, the Italian automobile manufacturer already owned 41 percent of the American car company, which filed for chapter 11 bankruptcy in April 2009 and emerged from the proceedings a little more then a month later with the help of Fiat and the United Automobile Workers union (UAW). Since then, Fiat has been intent on acquiring UAW's stake in the company, the news outlet reports.
After years of struggling, Chrysler rebounded significantly in 2013, with sales increasing 13.5 percent year-over-year in the third quarter.
"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 — a solid and open organization that will ensure all employees a challenging and rewarding environment," said Sergio Marchionne, Fiat's chief executive and the chairman and chief executive of the Chrysler Group, in a press statement.
Reuters reports that Fiat has a board meeting scheduled for later this month, during which executives will discuss where the company's headquarters will be located going forward. The source notes that it may move outside of Italy, where it has been for more than a century, a decision that could have significant repercussions in the automobile maker's home country.
Business acquisitions, while typically advantageous for everyone involved, can take quite some time to complete. Fortunately, there are mergers and acquisition companies that can assist with this complex process.