According to the prospectus to the planned merger of Fiat Chrysler with PSA, the tie-up will include a loyalty share scheme which rewards long-term investors in the new group and help prevent future takeover attempts.
In December 2019, car maker Fiat Chrysler (FCA) had agreed to merge with rival PSA in a $38 billion all-share deal, which sees the unification of and the creation of a group which will have multiple brands in its kitty including DS, Peugeot, Citroen, Opel, Fiat, Dodge, Jeep, Ram and Maserati.
The prospectus mentions that both companies have the option of calling off the merger if it is not completed by June 30, 2021 due to a failure to obtain necessary regulatory approvals.
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