[video] Quick Take: Fiat Takes the Wheel at Chrysler
NEW YORK (TheStreet) -- European automaker Fiat is starting off 2014 with a bang, announcing it will acquire the remaining 41.5% of Chrysler it does not already own in a $4.35 billion deal.
TheStreet's Ruben Ramirez discusses the news with Andrew Bulkeley of TheDeal.
"Sometimes it's the simplest things that are the most complicated," Bulkeley said.
Fiat wanted to purchase the remaining stake, but the United Auto Workers (UAW) trust wanted to get as much money as possible.
At one point, the UAW pushed for an IPO for Chrysler, asserting that Chrysler's valuation was higher than what Fiat was offering at the time.
In the end, Fiat paid $3.65 billion for the remaining 41.5% stake and made an additional "good faith" payment of $700 million, he noted.
Bulkeley concluded that the acquisition was important for Fiat, as it is expected that there will only be a handful of automakers in the future.
Fiat is the seventh largest automaker in the U.S. market and will likely try to find a way to expand its footprint, he said.
-- Written by Bret Kenwell in Petoskey, Mich.