Fiat and U.S. Government Sign Agreement to Acquire Chrysler

According to the Wall Street Journal, sources familiar with the situation revealed that Italian automaker Fiat and the U.S. financial department have reached an agreement on the acquisition of 6% of Chrysler’s shares in the latter’s hands. This 6% stake is the last of the U.S. government and Chrysler Corporation. The implicated, once the US financial department sells it, marks that Chrysler has completely escaped the aid of the U.S. government.

The source disclosed that it is expected that President Barack Obama will visit Chrysler’s Toledo plant in Ohio this Friday (June 3rd). At that time, Obama will announce an agreement with Fiat Auto. Fiat will pay more than $500 million to acquire Chrysler's shares in the hands of the U.S. Department of the Treasury.

It is understood that Fiat currently holds a 46% stake in Chrysler, once the completion of the acquisition of the United States Ministry of Finance in the hands of 6% of the shares, the former on the latter will reach absolute shareholding ratio. A U.S. Treasury spokesman declined to comment on the above report.

Fiat Motor Co. once said in a statement that it has notified the US Treasury Department of its intention to purchase. The company will implement the option to purchase 6% of Chrysler’s shares in the US government’s hands, and the transaction may be completed by the end of the year.

On May 24th, Chrysler repaid $7.6 billion in loans from the U.S. and Canadian governments, which allowed Fiat Auto to buy shares of Chrysler with a general-purpose fund purchase. On that day, Fiat Auto's $1.3 billion in cash was repaid to the U.S. and Canadian governments. Fiat is relying on this $1.3 billion fund to obtain a 16% stake in Chrysler.