Fiat Shaves $3.1 Billion Off Dividend Tied to PSA Merger
- Stake in Faurecia and another potential payout are consolation
- Changes boost combined company’s cash by 2.6 billion euros
This article is for subscribers only.
Fiat Chrysler Automobiles NV agreed to shrink a dividend tied to its merger with PSA Group by 2.6 billion euros ($3.1 billion) to shore up the combined company’s finances in the wake of the coronavirus pandemic.
The special cash payout to Fiat Chrysler shareholders will be reduced to 2.9 billion euros from 5.5 billion euros, the carmakers said Monday evening. The reduction will be partially offset by the Italian-American company’s investors getting a stake in French supplier Faurecia SE, and the boards of both automakers will consider an additional dividend later.