DETROIT - Italian automaker Fiat SpA says it has 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.
Sergio Marchionne, CEO of both Fiat
and Chrysler, has long sought acquire the union's shares in order to combine
the two companies. The deal eliminates the need for an initial public offering
of the trust fund's stake.