PARIS — PSA Group has laid the groundwork for a possible revision of the terms of its combination with Fiat Chrysler Automobiles.
PSA and FCA agreed in December to each pay an ordinary dividend of 1.1 billion euros ($1.2 billion) to shareholders as part of their planned merger to create the world fourth-biggest auto manufacturer.
The deal was negotiated before the coronavirus pandemic halted car production and triggered a worldwide slump in demand, almost halving the companies’ share prices.
As PSA Chief Financial Officer Philippe de Rovira detailed the severity of the damage inflicted by the health crisis on PSA and the broader European car industry, he said there has been no final decision on the payout. The company has postponed its annual general meeting to June 25 from May 14, delaying any confirmation.
The planned move “remains an open question” and any change would have to be agreed by both PSA and FCA as specified in the merger deal, De Rovira said during a call with…