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Fiat board approves merger agreement with Peugeot-source

MILAN, Dec 17 (Reuters) - The board of Italian-American carmaker Fiat Chrysler Automobiles approved a memorandum of understanding for a merger with French rival PSA Peugeot, a source close to the matter said. The board of PSA, which owns Peugeot, had earlier approved a binding agreement paving the way for a $50 billion tie-up to create the world’s number four carmaker.

Fiat’s own board meeting, which ended late on Tuesday, also approved the deal, the source said.

Reporting by Giulio Piovaccari, writing by Silvia Aloisi

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