Fiat Purchases Remaining Interests in Chrysler from VEBA Trust
It was only a matter of time before Fiat eventually bought out the rest of Chrysler. According to an announcement made by Fiat, the company has come to an agreement with the VEBA Trust to acquire the rest of the trust's equity interests in Chrysler Group LLC. In the sale, which will close by January 20, Fiat must pay the VEBA Trust aggregate consideration of $3.65 billion, which will consist of a $1.9 billion distribution by Chrysler Group to its members, and a $1.75 billion cash purchase to the VEBA Trust. Chrysler Group has also agreed to pay the VEBA Trust an additional $700 million, which will be paid out over the next four years in annual installments. "I have been looking forward to this day from the very moment that we were chosen to assist I the rebuilding of a vibrant Chrysler back in 2009. The work, commitment and achievement I have witnessed from Chrysler over the past four and a half years is nothing short of exceptional, and I take this opportunity to officially welcome each and every one of the people in the Chrysler organization to the integrated Fia-Chrysler world," said John Elkann, Chairman of Fiat, in a recent statement.Along with the purchasing of the remaining interests in Chrysler Group, Fiat North America and the VEBA Trust have agreed to dismiss the current proceedings in the Delaware Court of Chancery where Fiat has tried to obtain the rest of Chrysler Group held by the trust. Source: Chrysler
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