TURIN Italy (Reuters) - Fiat FIA.MI shareholders have approved the Italian carmaker’s and its U.S. unit Chrysler’s incorporation into a Dutch-registered entity on Friday, a move aimed at boosting the world’s seventh-largest auto group’s appeal with foreign investors and paving the way for a U.S. share listing.
The move was approved by a two-thirds majority, with 8 percent of all of Fiat’s shareholders voting against.
Should all those that voted against the merger exercise their exit rights, the merger could still fail according to a condition set as part of the merger.
Chief Executive Sergio Marchionne completed the full buyout of Chrysler earlier this year and now plans to incorporate the two as Dutch-registered Fiat Chrysler Automobiles (FCA).
He counts on the merger and the U.S. listing to help foot the bill for his ambitious 48 billion euro ($64 billion) plan to grow net profit five-fold and sales by 60 percent by 2018 by giving him access to a larger pool of capital resources.
Reporting by Agnieszka Flak