On Thursday, Fiat Chrysler and Peugeot maker PSA Group confirmed their intention to merge.
The proposed merger would create the world’s fourth-largest automaker with a roughly $50 billion valuation, according to a CNBC report. The combined company is expected to generate 8.7 million vehicle sales, $190 billion in turnover, and to have a combined 400,000 employees.
If the deal comes through, Fiat and PSA would merge on a 50-50 basis.
Executives have briefed regulators in the U.S. and France, the Wall Street Journal reported, citing unnamed sources.
The WSJ report indicated that Peugeot CEO Carlos Tavares is expected to lead the merged automaker as its CEO, while Fiat Chrysler chairman John Elkann would continue his role in the combined company.
The news comes five months after Fiat Chrysler ended merger discussions with PSA’s French rival, Renault. Fiat Chrysler, the world’s seventh-largest automaker, has been looking for a partner to expand scale and consolidate costs for a while.
The deal would give Peugeot six board seats and Fiat Chrysler five, according to the WSJ.
If Fiat’s deal with PSA does come through, it could potentially bolster Peugeot's re-entry into the U.S. market. For Fiat Chrysler, it would provide it with the resources to better compete in the rapidly shifting auto industry.