Fiat Chrysler may do more deals after Ferrari spinoff - Newswire Round-up
Fiat Chrysler Automobiles NV (NYSE:FCAU) is far from finished on the M&A front, according to a newswire report.
Bloomberg noted that Sergio Marchionne, the executive behind the Fiat merger with its US Chrysler unit, said that the market is still ripe for consolidation. According to the report, the company's recently completed spinoff of Ferrari puts the firm in a position to pursue additional deals.
Via the Ferrari spinoff, the report noted that Fiat was able to lower its debt. Additionally, the company wants to ensure that any future transaction allows the Agnelli family, Fiat Chrysler's largest shareholder, to retain control over Ferrari.
Although the family wishes to maintain this stake, they would probably be "open to strategic combinations that will reduce, or eliminate, their stake" in Fiat Chrysler, noted an analyst cited in the report.
In the past, Marchionne has mentioned Volkswagen AG, Ford Motor Co. and General Motors as logical partners. Mazda Motor Corp. and Suzuki Motor Corp. would also make sense, according to analysts, the report noted