European stocks rose as a jump in carmaker Stellantis and luxury stocks helped reverse early market losses due to worries about an economic recovery and losses in French grocer Carrefour. The pan-European STOXX 600 index closed 0.2% higher after see-sawing through the session. Trading globally was subdued with U.S. markets closed for Martin Luther King Day. The German DAX rose 0.4%, boosted by a 4.8% jump in Adidas, while UK’s FTSE 100 slipped 0.2% and France’s CAC 40 rose just 0.1%.Luxury stocks including Richemont and LVMH were among the top boosts to the STOXX 600 after bullish brokerage calls.
Maltese markets meanwhile ended flat with the MSE Equity Total Return Index registering a 0% change as no stocks moved in price. 7 stocks traded for a total volume of 382,014 shares with a combined value of €254,498.13.
Fiat-Chrysler & Peugeot merge into new company, Stellantis
Stellantis, the carmaker created by combining Fiat Chrysler and Peugeot-owner PSA, enjoyed a positive start on Monday, its shares rising 8% on their European market debut and valuing the business at around 42 billion euros. Stellantis will have 14 brands, from FCA’s Fiat, Maserati and U.S.-focused Jeep, Dodge and Ram to PSA’s traditionally Europe-focused Peugeot, Citroen, Opel and DS. Over the weekend, PSA shares were exchanged into new FCA shares. All FCA shares were then renamed as Stellantis.
With annual production of around 8 million vehicles and revenues of more than 165 billion euros, the world’s fourth largest auto company is expected to play a key role in the industry’s jump into the new era of electrification. “We have the scale, the resources, the diversity and the knowhow to successfully capture the opportunities of this new era in transportation,” Chairman John Elkann said in a video on the Borsa Italiana website to mark the occasion.
Chief Executive Carlos Tavares said the merger would add 25 billion euros in value for shareholders over the years, thanks to projected cost cuts. Fiat Chrysler (FCA) and PSA have said Stellantis can cut costs by more than 5 billion euros a year without plant closures. Milan-listed shares of Stellantis started trading at 12.758 euros and at 1330 GMT were up 8.1% at of 13.59 euros. The Paris-listed shares traded around the same level.
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