M&A Transactions in Italy: Case Study. The Stellantis case: strategic rationale, synergies and post-merger performance in the FCA–PSA merger

This thesis examines the merger between Fiat Chrysler Automobiles (FCA) and Groupe PSA, completed on 16 January 2021 with the creation of Stellantis N.V., as a case study of consolidation in the European automotive industry. The study develops along three lines: a review of the literature on M&A and corporate restructuring, with particular attention to the measurement of post-merger performance; an analysis of the sectoral conditions in which the merger was agreed and of the alternative strategies adopted by competing carmakers; and an empirical assessment based on official financial statements and market data. The empirical analysis keeps four complementary perspectives separate: long-term Total Shareholder Return against broad-market and sectoral benchmarks; multi-year operating performance based on revenues, EBITDA and EBIT margins, invested capital, ROIC and ROE, together with an assessment of the spread between ROIC and the estimated cost of capital; a short-window event study of the merger announcement and the September 2024 profit warning; and a comparison with four listed competitors that adopted different responses to the same industry disruption. The thesis also compares the synergy targets announced at the time of the deal with the subsequent results reported by Stellantis. Its purpose is to assess how much value the FCA–PSA transaction generated and why performance changed so markedly over the observation period. The evidence points to an initial phase of rapid synergy delivery and strong performance between 2021 and 2023, followed by a sharp reversal in 2024–2025 that culminated in a net loss of EUR 22.3 billion and a change in top management. These results are then considered in light of the FaSTLAne 2030 plan presented by CEO Antonio Filosa on 21 May 2026 and of the first available evidence on its implementation. The main conclusion is that scale obtained through M&A may be necessary in today’s automotive industry, but it is not sufficient to manage the sector’s technological and regulatory transition successfully.