Fiat Chrysler and PSA in talks to create one of world’s biggest carmakers
Car giant Fiat Chrysler has confirmed it is in “ongoing discussions” about a tie-up with Peugeot and Vauxhall owner PSA.
PSA, which operates UK Vauxhall factories at Ellesmere Port and Luton, said the talks were “aimed at creating one of the world’s leading automotive groups”.
The talks come after Fiat Chrysler ditched a previous attempted merger with another France-based car maker, Renault, earlier this year.
A merger between the US-Italian company and PSA could create a company valued at more than $50bn (almost £40bn).
Shares in Fiat Chrysler had risen sharply on Tuesday on reports that the two companies were in talks.
PSA shares rose 6% in early trading on Wednesday as the companies confirmed the discussions.
The French firm employs 5,000 people in the UK including 1,300 in Luton and 1,300 at Ellesmere Port, with others working in its retail and brand operations.