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Stellantis shares rose 7.5% on their first day of trading Monday after the company was formed on Saturday with the completion of the merger between Fiat Chrysler Automobiles and manufacturer Peugeot PSA Group.
“We have the scale, the resources, the diversity and the know-how to successfully seize the opportunities of this new era in transportation,” said John, president of Stellantis. Elkann said in a video about the bag Italian website on Monday.
Carlos, CEO of Stellantis Tavares said the merger would add 25 billion euros ($ 30 billion) in shareholder value over the years, thanks to planned cost reductions. “I can tell you that from day one the focus will be on creating value that is the result of implementing these synergies,” Tavares said in the same video.
Shares listed in Milan from Stellantis started trading at 12.758 euros and at 1000 GMT were up 7.5% to 13.51 euros. Paris-listed stocks traded at roughly the same level. This compares to that of Fiat Chrysler (FCA) closes Friday at 12:57 p.m. euros.
The title will debut in New York on Tuesday.
The listing of Stellantis is the culmination of discussions initiated by Tavares, then CEO of PSA, with his Fiat Chrysler counterpart at the end of 2018.
Tavares, 62, will lead an auto giant with around 400,000 employees and 14 brands into an uncertain future, where cars increasingly run out of batteries and software and the combustion engine meets its demise.
Tavares will hold its first press conference as Stellantis CEO Tuesday, after ringing the NYSE bell with Elkann.
Fiat Chrysler and PSA together were worth € 39.4 billion ($ 47.6 billion) at the close of trading last week, a fraction of the $ 783 billion market cap of Tesla, the world’s largest automaker. precious to the world.
Over the weekend, PSA shares traded for new FCA shares. All FCA shares were subsequently renamed Stellantis.
Intesa Sanpaolo analyst Monica Bosio said she expected markets to start evaluating synergies at Stellantis only once their impact is visible from the second half of this year.
“However, even excluding synergies, we continue to view Stellantis as underestimated on all parameters compared to its most direct peers,” Bosio said in a note.
Fiat Chrysler and PSA have said Stellantis can cut costs by more than € 5 billion a year without closing factories.
Reuters and Bloomberg contributed to this report
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