Stellantis shares close up in Europe on first day of trading
Stellantis NV shares had a positive start Monday in Europe on the first day of trading following the closure last weekend of the transatlantic merger between Fiat Chrysler Automobiles NV and French rival Groupe PSA.
Shares in Paris closed up 6.94% to $16.23 and in Milan up 7.57% to $16.32. STLA stock will begin trading Tuesday on the New York Stock Exchange due to Martin Luther King Jr. Day.
Stellantis has the scale, resources, diversity and knowledge needed to compete in a new era of transportation involving autonomy and electrification, Stellantis Chairman John Elkann, scion of the Fiat-founding Agnelli family, said in a video message ahead of the opening bells.
"Stellantis represents an extraordinary opportunity in this challenging era, but yet a very exciting one of profound change for our industry," he said. "Our ambition is to build something unique, something great by providing our customers with convenient, safe, sustainable and affordable mobility services."
The merger creates the world's fourth-largest automaker by volume that is expected to represent $30 billion in value creation, Stellantis CEO Carlos Tavares also said in the video message. The company forecasts $5.9 billion in annual cost savings.
"Both FCA management and the PSA management have demonstrated the ability to execute their plans," said Tavares, who comes from PSA. "The focus from day one will be on the value creation that is the result of the implementation of those synergies and the execution of those synergies is going to increase sharply the competitiveness of this company vis-à-vis its peers."
Tavares is expected to provide more information on the future of Stellantis on Tuesday during a worldwide press conference after ringing the opening bell in New York.