Bankruptcy

Fiat-Chrysler Deal Finalized on a Beach

At least it was more scenic than a corporate boardroom.

Fiat’s purchase of the remaining shares of Chrysler last week signified the end of a five-year effort by CEO Sergio Marchionne. Up until the last minute, there was a lot of negotiating going on between Marchionne and the United Auto Retiree Medical Benefits Trust in order to finalize an agreement. Before the final deal was signed, Fiat owned 58.5 percent of Chrysler while the UAW Trust held 41.5 percent. Marchionne, however, was intent on making a deal for a final merger before the New Year.

He finally got what he wanted while at a Florida beach resort town. The deal was struck on December 28 but wasn’t announced until New Year’s Day. The Fiat and Chrysler CEO pretty much spent his entire Christmas holiday hammering out details of the final deal, but at least he managed to enjoy his surroundings in Vero Beach, Florida. While there, Marchionne went to the home of a senior managing director of Brock Capital LLC, a company that helped advise the UAW Trust. It was at this house where the two sides made the final details of a $4.35 billion deal. Certainly a far cry from some corporate boardroom.

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