Fiat signed a deal to buy the remaining 41.46% stake it doesn’t own in Chrysler Group from the UAW VEBA Trust. This is the last step Fiat needed to take to continue a merger between the two carmakers in a $4.35 billion deal.
Fiat S.p.A. said that the voluntary employee beneficiary association which covers the healthcare costs of UAW retirees will receive $3.65 billion for the stake. Additionally, Chrysler will also make a $700 million payment to the UAW trust fund given in four separate installations.
Fiat Chairman John Elkann said he has looked forward to this day since Chrysler began its rebuilding process in 2009. The deal is expected to close on January 20 of this year.
Fiat will pay the trust $1.75 billion when the deal closes from cash on hand. Chrysler will make a special dividend $1.9 billion payment to complete the 41.5% transaction stake.