Combined company will be the 4th largest global OEM by volume and 3rd largest by revenue.

Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (PSA) have signed a binding Combination Agreement providing for a 50/50 merger of their businesses. The combined company is estimated to have annual sales of 8.7 million vehicles.

“This is a union of two companies with incredible brands and a skilled and dedicated workforce,” said Mike Manley, Chief Executive Officer of FCA. “Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait – they see challenges as opportunities to be embraced and the path to making us better at what we do.”

Completion of the merger is expected to take place in 12-15 months, subject to customary closing conditions, including approval by both companies’ shareholders.

“Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services,” said Carlos Tavares, Chairman of the Managing Board of Groupe PSA. “I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigour and enthusiasm.”