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French carmaker Peugeot in merger talks with Fiat Chrysler to create $50 bn company

PARIS, France: Peugeot Société Anonyme (PSA) Group, the owner of Peugeot, is planning a merger with its US-Italian rival carmaker, Fiat Chrysler.

The estimated combined value of the merger would amount to almost $50 billion in the global market.

A merger of the two groups would bring several brands under one roof including Citroen, Opel, Jeep, Vauxhall and Peugeot.

PSA Chief Executive Carlos Tavares is expected to lead the merged group, while John Elkann, Fiat Chrysler chairman and the head of Italy’s Agnelli industrial dynasty, would retain his designation at the new company.

The shares of Fiat Chrysler have increased by 7.5% on Wall Street.

Fiat Chrysler had previously walked off a merger agreement with another French carmaker, Renault, in June.