THE Merger between PSA Group, which owns the Citroen, Peugeot and Vauxhall brands, and Fiat Chrysler will create the fourth largest carmaker in the world.
The two have confirmed a $50bn (£30.8bn) merger deal aimed at making annual cost savings of $4bn through shared purchasing agreements and combined technologies.
PSA boss Carlos Tavares will become chief executive of the new company and will also have a seat on its board.
Earlier this year Fiat Chrysler proposed a merger with Renault but pulled out of the deal in June following intervention from the French government, which has a 15% stake in the French manufacturer.
The merger of FCA and PSA is expected to be completed within the next 12 to 15 months.
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