Fiat has announced they come to an agreement with the UAW to acquire all of the VEBA Trust’s equity interest in Chrysler Group LLC.

Fiat has announced they come to an agreement with the UAW to acquire all of the VEBA Trust’s equity interest in Chrysler Group LLC.

Under the terms of the deal, Fiat will purchase the remaining 41.4616% of Chrysler for $3.65 (€2.65) billion. The payment will be broken up into two parts and the money will be paid from available cash on hand. The deal also calls for Chrysler to provide additional contributions to the VEBA Trust in four equal annual installments totaling $700 (€508) million.

In a statement, Fiat and Chrysler CEO Sergio Marchionne said “In the life of every major organization and its people, there are defining moments that go down in the history books. For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments." He added, "The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment.”

The transaction is expected to close on or before January 20th, 2014.

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Fiat to take full control of Chrysler, deal set to close on January 20th