Fiat finally given go-ahead to take over Chrsyler

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Couple of days ago it was uncertain whether the sale Of Chrysler to the Italians would be blocked, but it has finally been confirmed that takeover can proceed without any further delay.

After all the dust has settled Fiat emerged a winner and owner of Chrysler. The US Supreme Court refused to stay the order at the behest of Chrysler’s creditors and Fiat’s Sergio Marchionne will head the Chrysler group.

Fiat will first take over 20 percent of the company, later increasing its stake to 35 percent, and once all the government loans are repaid, it will become majority share holder, getting a 51 percent stake in the beleaguered company. Currently Fiat is not paying any money to Chrysler for its stake, but will give the company access to its technology and research and development.

Thanks to Fiat, Chrysler will be able to get out of bankruptcy faster though both companies have a long haul ahead to make the cut.