Stellantis – the company born out of the merger of Peugeot Citroen and Fiat Chrysler – saw a healthy start to its existence as its shares traded on French and Italian Stock exchanges.
The new car maker – the fourth largest in the world – gained in value on its first day of trading.
The birth of Stellantis is the culmination of a two-year process that sees PSA Group and Fiat Chrysler Automobiles join forces.
The merger was completed on Saturday January 16 and the new company’s common shares began trading on Euronext in Paris and the Mercato Telematico Azionario in Milan yesterday (Monday January 18).
Trading on the New York Stock Exchange began today (Tuesday January 19).
In Milan yesterday shares started trading at €12.76 (£11.37) and were up by 7.5% to €13.51 (£12.03) by 10am.
In Paris trading saw a similar improvement.
Stellantis employs around 400,000 people and its combined annual sales are expected to be in the region of 8.7 million vehicles.
Between them PSA Group and Fiat Chrysler Automobiles were worth a combined 39.4 billion euros at the close of trading last week.
Going forward Stellantis said it expects to deliver cost savings of €5 billion a year.
Despite the euphoria around the new company’s launch bosses will face a challenge in emerging from the damaging effects the coronavirus pandemic has had on the global automotive industry.
The will also need to chart a well-planned course on the journey towards electrification.
In a sector where the seismic shift to electric vehicles is turning the industry on its head, Stellantis’s size and value must be measured against the all-conquering US electric car maker Tesla.
It had a market capitalization of $783 billion – making it the world’s most valuable car maker.
Former PSA Group chief Carlos Tavares is at the helm of the new firm.
Speaking on Monday when shares started trading he said: “You can trust our management in our execution capability. We are here to get the job done.”
John Elkann, the leader of the billionaire Agnelli family behind Fiat Chrysler, is the chairman of Stellantis.
At 3.05pm this afternoon (Tuesday January 19) the Stellantis share price was €13.87.
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