Deals
Italy Claims Fiat Undervalued Chrysler by $5.6 Billion
- Audit exposes carmaker to ‘exit tax’ risk up to $1.5 billion
- Settlement talks underway as Fiat works to seal PSA merger
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Italian tax authorities have claimed Fiat Chrysler Automobiles NV underestimated the value of its American business by 5.1 billion euros ($5.6 billion) following its phased acquisition several years ago, presenting the carmaker with a potentially hefty bill as it prepares to merge with French rival PSA Group.
The dispute relates to the company structure created in October 2014 following Fiat SpA’s purchase of the remainder of its Chrysler unit, according to company filings and an Oct. 22 audit report seen by Bloomberg. The purchases stretched over five years and culminated in the full takeover of the once-bankrupt owner of brands such as Dodge, Ram and Jeep.