Fiat Chrysler's stock had its biggest jump in five months on a report that it's in talks to merge with French carmaker PSA Group.
The Italian-American automaker and PSA, Europe's second-largest car manufacturer, are discussing a combination to create a $50 billion global automaker, the Wall Street Journal reported. Fiat Chrysler shares jumped 8.8% to $14.39 at 2:57 p.m. in New York, the biggest gain since May 28.
One possibility is an all-share merger of equals, where Carlos Tavares, chief executive of PSA-owned Peugeot, would serve as CEO, and Fiat Chairman John Elkann would be chairman of the new company.
Elkann, of Fiat's founding Agnelli family, walked away from merger talks with French rival Renault in June, blaming "political conditions in France." Earlier this year, Fiat Chrysler and PSA explored a partnership on pooling investment to build cars in Europe.
Bloomberg News
