Peugeot (PSA) and Fiat Chrysler (FCA) have confirmed their intention to merge in what would be a 50-50 share swap and create the world’s fourth-largest automaker.

The new company’s shares will be listed in New York, Paris and Milan with FCA’s John Elkann becoming the chairman and Peugeot’s Carlos Tavares becoming the CEO. The proposed tie-up would reportedly create an industry behemoth with 8.7 million vehicle sales, $190 billion in turnover and a combined 400,000 employees.

“Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders,” they said in a joint statement on Thursday morning.

“In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D (research and development) footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency.”

The new boards are now expected to finalize discussions over the coming weeks and draw up and a memorandum of understanding.

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