Agnellis poised to overtake Peugeots with car deal

Peugeot Invest SA

20/11/2019 09:41

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Christopher Thompson
    LONDON, Nov 20 (Reuters Breakingviews) - Two historic
industrial families are negotiating to unite. Shares of the
Peugeot clan’s $3 bln holding FFP have outperformed $19 bln Exor
over the past five years. But bigger savings for Fiat in a
Peugeot merger should allow the Italian dynasty to reclaim its
longer-term edge.    
    Full view will be published shortly.
    On Twitter https://twitter.com/CGAThompson
    
    CONTEXT NEWS
    - Most unions representing workers at Peugeot maker PSA are
in favour of a planned $50 billion merger with Fiat Chrysler
Automobiles, PSA executives and union representatives said on
Nov. 19.
    - The merger would help the firms pool resources to meet
tough new emissions rules and investments in electric and
self-driving vehicles, as well as counter a broader downturn in
car markets.
    - Securing support from Europe's powerful trade unions will
be critical for the merged company, which will employ more than
400,000 staff and operate hundreds of factories worldwide. At a
PSA works council meeting, all trade union representatives on
the council voted to give a favourable opinion on the merger.
    - "We will remain vigilant about the social impact and await
a clearer and more detailed picture of the plan's implications
for plants, volume, and how much work will be given to the
foundries," said Franck Don, representative of the CFTC union,
according to a Reuters report.
    - For previous columns by the author, Reuters customers can
click on  THOMPSON/ 
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PSA trade unions give the nod to merger with Fiat   
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BREAKINGVIEWS–Value fight would drive Peugeot into cul-de-sac   
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 (Editing by Rob Cox and Karen Kwok)
 ((Christopher.G.Thompson@thomsonreuters.com; Reuters Messaging:
Christopher.G.Thompson.thomsonreuters.com@reuters.net))