Fiat set to acquire Chrysler’s majority stake



Fiat will Buyout Six Percent Stake of US Government in Chrysler

Fiat will Buyout Six Percent Stake of US Government in Chrysler

Fiat is set to become the biggest stakeholder in Chrysler as the company announced it’s willingness to buy the 6% US government stake in the US carmaker.

Fiat has been building up its shareholding after it agreed to share technology and management with the US government in exchange for a 20% stake in the troubled company since it emerged from bankruptcy protection in 2009.

Fiat stake will go up to 52% after it acquires the US government stake. The final price will be settled in the next 10 days, Fiat confirmed.

Fiat has already issued a statement to the US treasury informing its decision to exercise the option to buy-out the government’s stake.

If Fiat manages to meet certain government targets, its share may go up to 57% by the end of the year. Chrysler has already announced on Tuesday that it has managed to payoff $7.6 billion US and Canadian government loan, six years ahead of schedule.

Chrysler has announced a profit of $116 million in the first three months of operation this year, its first since it emerged from bankruptcy protection.

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