Hyundai Group scouting to buy Fiat Chrysler Group
The global automotive industry is strife with rumours of Hyundai group looking to buy out Italian-American FCA – Fiat Chrysler Automobiles. The Hyundai group currently consists of Hyundai, Kia and Hyundai’s parts division Mobis. The Fiat Chrysler Automobiles Group on the other hand consists of manufacturers like Fiat, Chrysler, Alfa Romeo, Lancia, Iveco, Maserati and Jeep. According to a report by AsiaTimes, the Korean automaker has been waiting for the FCA share prices to drop to a certain figure before ‘launching a takeover bid’ for the Italian-American auto conglomerate.
Rumours also suggest that the Hyundai takeover bid is being led by Paul Singer, the head of Elliott Management, which owns over a Billion Dollar stake in the Hyundai group. Paul Singer also owns a major stake in Telecom Italia and owns the football club AC Milan. The FCA CEO for Europe, Middle East and Africa, Aftredo Altavilla is also on the board of Telecom Italia. While these are still rumours and both FCA and Hyundai have refused to officially comment on the matter, this merger could made the Hyundai-FCA group the largest automaker in the world overtaking the Renault-Nissan-Mitsubishi alliance and automakers like Toyota and Volkswagen.
The FCA group, led by CEO Sergio Marchionne has been looking for a merger for quite few years now. The FCA group has been linked (for mergers) with other auto groups like General Motors and even rumours of similar mergers with the Volkswagen Group. The Jeep brand, which is currently the most profitable auto brand under the FCA umbrella too has received offers for a buyout from the likes of Chinese automakers like Great Wall. Incidentally, Sergio Marchionne will be stepping down as the CEO and retiring in May 2019 at the annual FCA investor meeting and reports suggest that the Hyundai ‘takeover bid’ will happen before that meeting. Supercar maker Ferrari however has been spun off as a separate entity a few years ago and even though FCA management to a certain degree controls it, the automaker might not be a part of this takeover.
Keep watching this space for updates!
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