Cars

Fiat to pay $3.65B for remaining Chrysler shares

Sergio Marchionne, the chief executive of both Fiat and Chrysler, has long sought to combine the companies.
Sergio Marchionne, the chief executive of both Fiat and Chrysler, has long sought to combine the companies.Credit: ERIC PIERMONT/AFP/Getty Images/File 2012

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DETROIT — Italian automaker Fiat SpA announced Wednesday that it reached 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 as part of an agreement with the UAW. The deal is expected to close on or before Jan. 20, according to a statement from Chrysler.

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