Fiat says completes deal to buy out U.S. unit Chrysler

MILAN Tue Jan 21, 2014 10:42am EST

MILAN Jan 21 (Reuters) - Fiat said on Tuesday it had completed the acquisition of shares in Chrysler it did not previously own, making the U.S. unit a wholly-owned subsidiary of the Italian carmaker.

The company announced on Jan. 1 that it had struck a $4.35 billion deal to gain full control of Chrysler, ending more than a year of tense talks that had obstructed Chief Executive Sergio Marchionne's efforts to combine the two automakers' resources.

Fiat bought the remaining 41.46 percent stake in Chrysler from a retiree healthcare trust affiliated with the United Auto Workers union. The trust, known as a voluntary employee beneficiary association or VEBA, has received $3.65 billion in cash for the stake, $1.9 billion of which came from Chrysler and $1.75 billion from Fiat.

Chrysler has also committed to giving the UAW trust another $700 million in four equal annual installments, the first of which was paid in connection with the deal closure, Fiat said.

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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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