FCA, Peugeot Not To Pay 2019 Dividends; Says 50/50 Merger Plans Advancing Well

(RTTNews) - Fiat Chrysler Automobiles N.V. (FCAU) and Peugeot S.A. or Groupe PSA (PEUGF.PK), who have agreed on a 50/50 merger of their businesses, announced Thursday that their respective Boards decided not to distribute an ordinary dividend in 2020 related to fiscal year 2019, in light of the impact from the current COVID- 19 crisis.

It was in December last year that FCA and Groupe PSA, the owner of Peugeot and Opel brands, agreed on the merger.

At that time, FCA expected to distribute to its shareholders a special dividend of 5.5 billion euros before the deal closure, while Groupe PSA expected to distribute to its shareholders its 46% stake in Faurecia. Each company planned to distribute a 1.1 billion euros ordinary dividend in 2020 related to fiscal 2019.

Further, the companies now confirmed that preparations for the 50/50 merger of their businesses are advancing well, including with respect to antitrust and other regulatory filings.

Completion of the proposed combination is expected on schedule, before end of first quarter of 2021, subject to customary closing conditions.