Fiat Chrysler, PSA tell employees they will sign merger agreement in coming weeks

FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo

MILAN/PARIS (Reuters) - Fiat Chrysler FCHA.MI and Peugeot-owner PSA PEUP.PA told their employees they would sign a binding merger agreement in coming weeks.

In two separate communications through internal channels, obtained by Reuters on Tuesday, the two groups told employees that more than 50 people were involved in the process.

FCA and PSA are in talks to finalize a merger that would create the world’s fourth-largest carmaker.

Nine working groups were established, led by FCA Group Treasurer and Global Head of Business Development David Ostermann, and by PSA Executive Vice President Program and Strategy Olivier Bourges, the documents added.

FCA Chariman John Elkann last week said he was not worried by a shock lawsuit from General Motors GM.N and that he was confident of reaching a binding merger deal with Peugeot owner PSA by the end of this year.

Reporting by Giulio Piovaccari in Milan, Gilles Guillaume in Paris; Editing by Tom Hogue and Stephen Coates