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Shares soar as Fiat clinches control of Chrysler

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Shares soar as Fiat clinches control of Chrysler


Shares in Italian carmaker Fiat surged by 15 percent on Thursday morning, with the news that it is to take full control of Chrysler.

Fiat already had a majority stake in the US automobile giant. Now the remaining 41 percent, controlled by a workers’ trust fund, is being bought in a 4.3 billion dollar deal that ends long and difficult negotiations.

Fiat Chief Executive Sergio Marchionne has run both firms since Chrysler’s US government-funded bankruptcy restructuring in 2009.

He aims to create the world’s seventh-largest auto group.

The transfer of shares should be completed later this month.

It will allow Fiat to merge Chrysler’s operations entirely with its own, improving profitability by exploiting badly-needed economies of scale.

However it remains to be seen whether a merger will be enough to cut the Italian firm’s losses in Europe.

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