CEO Sergio Marchionne said a combined Fiat and Chrysler will likely be listed in New York. (David Coates / The Detroit News)
Fiat SpA announced Tuesday that it has completed its acquisition of Chrysler Group LLC.
The Auburn Hills automaker “is now a wholly owned subsidiary of Fiat,” the Italian company said in a statement.
Fiat gained control of Chrysler as part of a 2009 bailout of the bankrupt automaker brokered by the Obama administration. That deal also gave a minority stake in Chrysler to a retiree health care trust controlled by the United Auto Workers.
On Jan. 1, Fiat announced that it had reached an agreement with the UAW trust to purchase its shares for $4.35 billion.
The UAW Retiree Medical Benefits Trust confirmed that it received $3.825 billion of that total Tuesday, as part of the agreement’s schedule.
“We reached a successful conclusion that will benefit the trust’s retirees,” Robert Naftaly, chairman of the committee that governs the trust, said in a statement. “This was always our goal. As a result, the Trust is stronger.”
Fiat’s board is scheduled to meet on Jan. 29 to decide how to complete the merger of Fiat and Chrysler, where the combined company will be registered, what it will be called and where its stock will be traded.
Sergio Marchionne, who is CEO of both Fiat and Chrysler, told reporters at the North American International Auto Show in Detroit last week that the merged company will have both Fiat and Chrysler in its name.
Fiat is currently traded in Milan, but Marchionne said a combined Fiat and Chrysler would likely also be listed in New York to ensure easy access to the capital markets.
The UAW trust, which is the largest non-governmental purchaser of retiree health care benefits in the United States, provides health care benefits to more than 777,000 UAW retirees and dependents from General Motors, Ford and Chrysler. It still holds a promissory note from Chrysler worth $4.8 billion.
“It’s a costly note,” Marchionne said last week. “We’re looking at this as part of the whole finance structure.”