Watch CBS News

Fiat To Pay $3.65B For Remaining Chrysler Shares

DETROIT (AP) - Italian automaker Fiat SpA says it has an agreement to acquire the remaining shares of Chrysler for $3.65 billion in payments to a union-controlled trust fund.

Fiat already owns 58.5 percent of Chrysler's shares, with the remaining 41.5 percent held by a United Auto Workers union trust fund that pays health care bills for retirees.

Under the deal, Fiat will make an initial payment of $1.9 billion to the fund, plus an additional $1.75 billion upon closing the deal.

Chrysler will also make additional payments totaling $700 million to the fund.

Sergio Marchionne, CEO of both Fiat and Chrysler, has long sought acquire the union's shares in order to combine the two companies. The deal eliminates the need for an initial public offering of the trust fund's stake.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.