Fiat-Chrysler Merger Clears Buyout Hurdle

Fiat SpA says it won't exceed its self-imposed payout limit of €500 million to shareholders who opt to cash out their stakes rather than convert them into shares of a merged Fia and Chrysler Group LLC.

Staying below that ceiling clears a hurdle that could have delayed the plan to combine the two companies to create Fiat Chrysler Automobiles NV. The new company is to be registered in the Netherlands, headquartered in London and listed on the New York Stock Exchange.

Fiat said previously that it would scrap and relaunch the merger plan if it had to pay more than €500 million to reluctant shareholders. It now expects to finalize the merger in October.