Fiat and Chrysler complete merger, will open NYSE trading
(NEWSY) -- The newly-minted merger between Fiat and Chrysler will hit the New York Stock Exchange Monday as Fiat Chrysler Automobiles, which is now the seventh-largest automaker in the world.
Monday's listing isn't exactly an IPO -- the new company won't release new shares to the market -- but instead will be transferring shares from Italy to New York under the symbol FCA.
The new stock is expected to start at around $8.77 a share, its closing price in Milan on Friday. The company has about 88.5 million shares it eventually plans to transfer.
This deal marks the culmination of Fiat's gradual acquisition of Chrysler. Fiat CEO Sergio Marchionne picked up a 35 percent stake in the company after Chrysler filed for bankruptcy in 2009, according to Bloomberg.
The partnership has worked well for both companies, breathing new life into Chrysler while also helping the European-centric Fiat shift overseas. With the merger, Marchionne plans to take the new company to the top of the industry, aiming to boost sales 60 percent by 2018.
But the new company is hitting the market at an unfortunate time, amid bad news from industry leaders Ford and GM along with general uncertainty within the industry, the Detroit Free Press reported.
Fiat is still carrying over $12 billion in debt and a junk credit rating, which might give investors cause for hesitation, according to the Wall Street Journal. However, the new company could tap into cash reserves at Chrysler to help address that issue by 2016.
The merger, and subsequent plan for growth, look to be the twilight of Marchionne's tenure as Fiat CEO - he recently told Bloomberg he plans to step down in 2018.