Fiat shareholders approved the Italian manufacturer and its U.S. unit, Chrysler, into a Dutch-registered entity on Friday.
The move increases appeal with international investors.
The new company — FCA (Fiat Chrysler Automobiles) — is expected to have its headquarters and tax domicile in Britain.
Fiat went one step closer toward globalization today with the announcement that its shareholders had approved Fiat and Chrysler’s new incorporation into a Dutch-registered entity called FCA (Fiat Chrysler Automobiles.)
All but eight percent of Fiat’s shareholders voted for the new arrangement which sets up the merger as a separate entity. Fiat CEO Sergio Marchionne completely bought Chrysler earlier in 2014, and with the approval of the shareholders will incorporate the two in the Netherlands as FCA.
The move helps the corporation obtain a primary U.S. share listing in New York, which will help pay for Marchionne’s 48 billion euro ($64 billion) plan to grow net sales by 60 percent by 2018.
During the U.S. economic meltdown in 2009, Marchionne helped rescue Chrysler, and made the brand a profit center for Fiat.
This merger ostensibly helps the company highlight its gains in the United States, and simultaneously distance itself from state-sponsored temporary worker layoffs in Italy, both of which should make FCA more attractive to investors worldwide.
According to Investing.com, despite its Dutch registry, its potential American stock listing and its Italian leadership, FCA’s headquarters is expected to be in London, with its tax domicile in Britain.
Long-term investors will have their Fiat shares replaced with FCA shares.
