Stellantis buys back 50 Million Shares from its Chinese partner

Stellantis, the parent company of Chrysler, announced on Nov 22 that it had repurchased 50 million common shares from Dongfeng Motor (Hong Kong) International for approximately 934 million euros ($1.02 billion). Stellantis, which has a joint venture with Dongfeng Motor in China, has stated that it intends to cancel these shares and that the transaction with Dongfeng will have no effect on its 1.5 billion euro open-market repurchase programme.

The programme, which was announced on February 22nd, is expected to be completed by the end of 2023. Dongfeng, a Chinese automaker, would keep 49.2 million common shares, or 1.58 percent of Stellantis' post-cancellation share capital.

Stellantis N.V. is a multinational automotive manufacturing corporation formed by the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group of France. The company is based in Amsterdam. Stellantis was the fourth-largest automaker by sales in 2022, trailing Toyota, Volkswagen Group, and Hyundai Motor Group.

Stellantis paid €1.5 billion for "approximately 20%" of Chinese electric vehicle manufacturer Leapmotor on October 26, 2023. Stellantis received exclusive rights to sell, export, and manufacture Leapmotor products outside of China under the newly formed joint venture Leapmotor International.