(Press review) It will take some time before the merger between the PSA group and the FCA group is concretely realized. Words of John Elkann, president of the Italian-American unit, which distinguishes the announcement of the alliance from the actual formalization of the latter. In that of Turin, Elkann wanted to reiterate this concept, underlining however the advantages that the partnership would bring with it.
FCA-PSA, Elkann: "only announced merger, it will take time"
Dialogue at a distance between John Elkann and Carlos Tavares. The two protagonists of the agreement between Fca and Peugeot expressed themselves at the same time yesterday morning. Elkann spoke in Turin to an audience of Polytechnic students, the same university where he graduated. Tavares has chosen the microphones of the French radio station Bfm. For Elkann "the alliance with Peugeot is a great opportunity for Turin and for Italy". Although, the FCA president warns, "the agreement has been announced, it is not yet done. And between when these agreements are announced and when time passes ». On Monday, the two companies met for discussion on specific issues. Delicate and decisive discussion because it helps to understand who will do what in the new group with 8.7 million cars sold per year. What is the advantage? That with the alliances you can save on investment costs. Elkann takes up the theory that belonged to Sergio Marchionne and applies it to current events: "We as Fca have benefited greatly from the agreement with Chrysler as well as Peugeot from the one with Opel. In fact, investments can be spread across multiple platforms. Each euro is used to make different cars. They are positive operations because the resources are better used ". At the same time in Paris, Tavares confirmed the same theory: "The merger between the two groups will create enormous value and save for 3.7 billion." For the future of the group "there is no reason to reduce the number of brands". The CEO of Psa also wanted to reassure the French on the transfer of the registered office in the Netherlands: "We do not do it for a tax advantage but to mark the neutrality of the new group with respect to the different geographical areas". The relocation of the office ignited a long quarrel in France, similar to the one that broke out in Italy when Fca was born and the group headquarters was taken to the Netherlands. Neither of the two representatives of the companies in the race for the merger wanted to say how long it will take to reach the memorandum between the two parties. It is assumed that the document can arrive by the beginning of December. (…)
Paolo Griseri, La Repubblica
The occasion to talk about the ongoing negotiations between the Italian-American and French groups was yesterday Elkann's participation in a meeting at the Polytechnic of Turin, in the context of the Technology Festival. "We are excited about what can be done with Psa, also imagining the challenges of the future" of the automotive sector, among which Elkann has indicated electrification, connectivity and autonomous driving. On the other hand the past experience of the Fiat group has been positive if we go back to the marriage with Chrysler: «We have greatly benefited as FCA from the agreement with Chrysler and Peugeot did the same from the agreement with Opel where these operations are made to invest less. An invested euro can be spread on several machines. This is the industrial reason why these operations are positive and we have both experienced this ", underlined the president of Fca, who however warned to caution:" The merger was announced, it was not done. To be announced to do it then also a long period passes ». And the path from here on is clear to both parties. If by now it seems imminent, a matter of a few weeks, the signing of a non-binding memorandum, the time to actually close the operation are instead longer: between negotiations and authorizations it could take about a year. And in fact on the French front, Carlos Tavares, CEO of Psa and probable CEO of the new post-merger group, in an interview with Bfm Business points out that «considering all the necessary regulatory authorizations that must be obtained, an agreement of this type does not close in less than a year ». Once the agreement has been found, the European Commission will have to give the green light to the merger. On the Tavares issue he does not flinch: if a marriage is a matter of compromise, the CEO of Psa declares himself ready to "all the concessions" to get the green light in Brussels. (…)
Monica D’Ascenzo, Il Sole 24 Ore