TURIN (dpa-AFX) - Italian carmaker Fiat SpA Wednesday said it has agreed to buy the remaining interest in Chrysler Group LLC it does not currently own for $3.65 billion.
Fiat will buy the 41.5 percent interest in Chrysler from retiree healthcare trust known as VEBA that is affiliated with the United Auto Workers union. VEBA will get $3.65 billion in cash for the stake. The deal is expected to close on or before January 20, 2014.
The trust will get the aggregate amount in two forms, one as a special distribution payable by Chrysler Group to its members of about $1.90 billion, and a direct payment from Fiat of about $1.75 billion. Both Chrysler and Fiat will fund the deal with cash in hand.
Chrysler has also agreed to pay the trust an additional $700 million in four equal installments over four years, starting from the closing date of the deal.
'I have been looking forward to this day from the very moment that we were chosen to assist in the rebuilding of a vibrant Chrysler back in 2009' said John Elkann, Chairman of Fiat.
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