FCA To Merge With PSA

ShinerBock wrote:

FishOnOne wrote:

thomasmnile wrote:
Quite aware of what a merger is, thank you. I also know that every time Chrysler was acquired/merged by Daimler, Cerberus, Fiat, the man in the moon, it was because Chrysler's continued existence depended on it. Is this even a merger of 'equals'? Equally distressed or flush with cash?

There is never a merger of equals. The one that holds the most cash holds all the cards on the table.

Actually if you look at the data and numbers, a PSA and FCA merger would be a merger of equals. Each side would own half the shares. They will also have an equal split of board representations similar to the the Fiat/Chrysler merger did.

PSA And Fiat Chrysler Unveil Merger Of Equals

Again in reality there never is equals... It may be reported that how it's going to be structured but it won't last.

Here's a copy/paste: The companies would combine under a Dutch parent company, with a board of 11 members, five nominated by FCA and five by PSA. Carlos Tavares, CEO of PSA Groupe, would be CEO of the new company; FCA Chairman John Elkann would retain his role.

I suspect the CEO will fill the 11th spot or someone at the parent company, and if this report is correct with Carlos Tavares being the new company CEO it looks like PSA will eventually dominate the company.

11 Board Members is not Equal Representation