Fiat Chrysler-PSA Merged Entity Likely to Have Chinese Major Shareholder

The merged entity of Fiat Chrysler Automobiles NV and France’s PSA Group is likely to end up with a major Chinese shareholder, as carmaker Dongfeng Motor Corp. is seen hanging onto its stake in the French company.

China’s state-owned enterprises typically invest for the long term and for access to their partners’ capabilities and technologies, said Bill Russo, founder of Automobility Ltd., a Shanghai-based advisory firm. It’s unlikely Dongfeng will use PSA and Fiat Chrysler’s planned merger to exit, he said.