What to know about Stellantis as it debuts on NYSE

Stellantis – the French-based Fiat Chrysler and PSA Group merged automaker – will begin trading on Tuesday under the symbol “STLA” on the New York Stock Exchange.

The $ 52 billion merger was finalized on Saturday with the new company’s shares trading Monday under the same ticker symbol on Euronext in Paris and on Borsa Italiana in Milan, Italy. Trading in US stocks was delayed for a day because US markets were closed Monday for Martin Luther King Jr.’s vacation.

Stellantis is the world’s fourth largest automaker by volume. The operations of the company, including its 400,000 employees, will be largely in North America and Europe.

Here’s what you need to know about the company:

Actions

Following the merger, Groupe PSA shareholders received approximately 1.7 Stellantis shares for each PSA share, while Fiat Chrysler shareholders received 1 Stellantis share for each of their shares.

In a virtual launch on the Borsa Italiana website, Carlos Tavares, CEO of Stellantis, former CEO of Groupe PSA, said the merger would add 25 billion euros ($ 30.3 billion) in shareholder value over the next few years due to expected cost reductions.

“All of our employees and management teams are totally focused on the value creation that is linked to the FCA-PSA merger and the creation of Stellantis,” he said.

Cost reduction

The merger is expected to deliver about 5 billion euros, or $ 6.1 billion, in annual savings, officials said.

Stellantis

The name of the company is rooted in the Latin verb “stello” which means “to brighten up with stars,” the companies said.

The name Stellantis will be used for the umbrella company, but not for its vehicles. The company’s 14 individual car brands such as Alfa Romeo, Chrysler, Fiat, Jeep and Peugeot – all of which have historical significance in their respective countries – will remain unchanged.

Board of directors

Stellantis’ board of directors is made up of two executive directors, Tavares and former Fiat Chrysler chairman, John Elkann.

The non-executive directors of companies are:

• Robert Peugeot, from the Peugeot family of the French manufacturer
• Henri de Castries, former CEO of the insurer Axa SA
• Andrea Agnelli, Elkann’s cousin and member of the family that controls Fiat Chrysler
• Fiona Clare Cicconi, Director of Human Resources at AstraZeneca PLC
• Nicolas Dufourcq, CEO of the French investment bank Bpifrance SA
• Ann Frances Godbehere, Director of Royal Dutch Shell PLC
• Wan Ling Martello, partner and co-founder of private equity firm BayPine
• Jacques de Saint-Exupéry, head of the PSA works council
• Kevin Scott, chief technology officer at Microsoft Corp.

– CNBC Elliot Smith contributed to this report.