Steel Markets

Merger for FCA and Peugeot
Written by Sandy Williams
October 31, 2019
FCA and Peugeot announced a $48 billion merger on Thursday that will make the combined company the fourth largest automaker in the world. The 50/50 merger will have combined revenues of nearly $190 billion and annual unit sales of about 8.6 million vehicles. Together the company will employ roughly 410,000 employees.
Peugeot parent PSA Group and Fiat Chrysler agreed that FCA Chairman John Elkann will be chairman of the combined company and PSA CEO Carlos Tavares will become CEO. The company will be headquartered in the Netherlands.
The merger will help fund the research needed to transition from gas-powered vehicles to electric, said Jessica Caldwell, director of industry analysis at Edmunds.
“The electrified, autonomous future everyone is waiting for just isn’t feasible without automakers merging and forming strategic alliances to share research and development costs,” said Caldwell in a comment to CNN. “This is a smart move by both Fiat Chrysler and PSA to ensure their companies continue to be viable and relevant as the industry evolves.”
FCA and PSA expect $4.1 billion in estimated annual run-rate synergies based on more efficient allocation of resources for large-scale investment and purchasing capability, and without plant closures..

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

USW cheers Evraz NA agreement with Atlas Holdings
The United Steelworkers (USW) labor union celebrated recent news of the signed agreement between Atlas Holdings and Evraz NA in which the Connecticut-based private equity company said it plans to acquire North America’s Evraz facilities.

Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.

Hot-rolled coil buyers continue seeking certainty
Steel market participants contend that buyers will remain in “wait-and-see" mode until some market stability is restored.

Latin American steel advocates warn on cheap import flood
Subsidized Chinese steel imports and cheap steel products from Association of Southeast Asian Nations (ASEAN) entering Latin American (LATAM) are threatening the region's steel market.

CRU: Steel prices fall amid global demand weakness
The forceful headwinds bearing down on steel markets across the globe have created demand challenges and sent prices southward. The US, however, challenged the global trend.