Peugeot still aims to sign merger deal with Fiat this year - source (updated)

Peugeot Invest SA

22/11/2019 17:35

(Edits, adds background)
    By Gilles Guillaume
    PARIS, Nov 22 (Reuters) - French carmaker PSA  PEUP.PA 
plans to sign a $50 billion merger deal with Fiat Chrysler
Automobiles (FCA)  FCHA.MI  this year, a source with direct
knowledge of PSA's thinking said on Friday, brushing off
concerns over a shock lawsuit filed this week.
    The merger is set to create the world's fourth-largest
carmaker and give the new entity the scale to meet technological
and regulatory challenges that are troubling automakers
globally.  urn:newsml:reuters.com:*:nL8N2811Y3
    FCA has already said the lawsuit brought against Fiat by
General Motors Co  GM.N  on Wednesday was "meritless".
    The source, who spoke on condition of anonymity, said
Peugeot-manufacturer PSA remained focused on the merger talks,
and intended to sign a memorandum of understanding on the deal
this December, as scheduled.
    Fiat also expressed confidence in reaching a binding merger
deal with PSA by the end of this year.
    GM filed its lawsuit in the United States, alleging FCA had
bribed United Auto Workers (UAW) union officials over years to
corrupt the bargaining process and gain advantages, costing GM
billions of dollars.
    FCA said the suit, seeking substantial damages, appeared
intended to disrupt the Italian-American firm's merger plan with
PSA.

 (Writing by Sudip Kar-Gupta and Christian Lowe; Editing by
Elaine Hardcastle)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))