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The high-profile merger brings together 14 distinct manufacturers, and will ultimately establish the world’s fourth largest car company.

The Fiat-Chrysler Group and Peugeot Group have agreed to amend terms of the Stellantis merger agreement, in order to address the liquidity impact of the COVID-19 pandemic.

The Fiat-Chrysler special shareholder dividend has now been set at €2.9 billion (approximately AU$4.7B), down from €5.5B (AU$8.9B) in the initial arrangement.

Meanwhile, Peugeot Group’s 46 per cent stake in French automotive technology firm Faurecia will now be distributed to all Stellantis shareholders, following approval by the Stellantis board and shareholders.

It has also been agreed that the boards of both conglomerates will consider a potential distribution of €500 million (AU$811M) to the shareholders of each company before the merger deal is closed. Alternatively, a distribution of €1B (AU$1.6B) will be paid to all Stellantis shareholders following finalisation.

Both parties have confirmed that all other terms to the combination agreement remain unchanged.

The high-profile merger was announced in late 2019, and will unite 14 distinct brands. These are Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall.

The Stellantis name is expected to be used exclusively for business dealings, and the badging for the group’s subsidiaries will be unchanged.

With the agreement expected to be finalised in the first quarter of 2021, it will ultimately establish the world’s 4th largest global automotive OEM by volume.