Fiat Chrysler, Peugeot owner PSA agree binding merger deal

PARIS/MILAN, Dec 18 (Reuters) - Fiat Chrysler and Peugeot maker PSA said on Wednesday they had agreed on a binding merger agreement, in a $50 billion deal that will pave the way to the creation of the world’s fourth-largest carmaker.

The transaction is expected to close in the next 12 to 15 months, the companies added.

Before the 50-50 share merger is completed, one of PSA’s shareholders, China’s Dongfeng Motor Group, will trim its 12.2% stake in the French carmaker by selling 30.7 million shares to PSA, they added.

That stake was worth 679 million euros ($748.4 million) at the most recent closing price. ($1 = 0.9073 euros) (Additional reporting by Joe White and Sudip Kar-Gupta; Editing by Sarah White)