Fiat Completes Chrysler Purchase

Fiat SpA has completed its acquisition of 100% of Chrysler Group LLC and will fully merge the two companies.

The $4.35 billion deal was announced on Jan. 1. It gives Fiat, which already owned 58.5% of the American company, the remaining stake held by a United Auto Workers union healthcare trust.

Terms of the deal were unchanged. Fiat and Chrysler made cash payments of $1.75 billion and $1.9 billion to the trust, respectively, using available cash on hand.

In addition, Chrysler has agreed to make four annual $175 million payments to the trust, with the first such payment occurring today.

The sale makes Chrysler a wholly owned unit of Fiat, fulfilling CEO Sergio Marchionne's plan to create a global car company big enough to compete with such rivals as General Motors and Toyota. Last year Chrysler and Fiat sold a combined 4.2 million vehicles worldwide compared with 9.7 million for GM and an estimated 9.9 million for Toyota.

Chrysler profits have offset Fiat losses over the past two years. Fully merging the two companies will give the Italian company access to Chrysler's cash, which totaled $11.5 billion at the end of September.

Marchionne has said that the merged Fiat-Chrysler also would consider nonequity partnerships with other carmakers.