10:17 am, January 2, 2014
FIAT has announced it has agreed to buy up the remaining 41 per cent share of Chrysler.
The $4.35bn (£2.6bn) deal sees the Italian motor giant take full control of the American brand, making Fiat and Chrysler the seventh-largest car group in the world.
Fiat has had a majority share in Chrysler since 2009, and this latest deal marks an end to long negotiations between the Italian car firm and stakeholder Veba Trust – a healthcare trust which looks after medical benefits for 117,000 retired Chrysler employees.
Chrysler and Fiat will pay the trust an initial $3.65bn (£2.2bn) and a further $700m to Veba once the deal has been completed.
The news sent Fiat shares soaring 15 per cent – the biggest gain in more than three years.
