DETROIT — Fiat said Tuesday it has completed a $4.35 billion deal to acquire all of Chrysler’s remaining shares from a union-managed trust.
Completion of the deal brings to a conclusion Chrysler Group LLC and Fiat SpA CEO Sergio Marchionne’s nearly five-year quest to merge the two automakers both operationally and financially. It also effectively means that Chrysler is fully owned by Fiat, even though it will retain its presence in Michigan.
The deal also resolves a lawsuit between Fiat and the UAW trust over the value of the shares and averts a potentially complicated initial public offering for Chrysler that the United Auto Workers’ Retiree Medical Benefits Trust could have forced the automaker to undertake.
For the UAW Trust, which provides medical benefits to 117,000 UAW-represented Chrysler retirees, the deal provides much-needed funding.
The UAW Trust said it received $3.825 billion Tuesday and said the proceeds will be used to provide additional funding security for the health benefits for Chrysler retirees and dependents.