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 (47.70 billion pounds) 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