Italian car maker Fiat is set to purchase remaining 41.4% stake in American automaker Chrysler Group in an agreement with the US auto workers' pension fund VEBA Trust for $3.65bn.
The move forms part of the company's plan to merge both automotive firms to create a new global auto giant.
According to Fiat, the deal includes a $1.9bn special distribution payable by Chrysler Group to its members and $1.75bn in cash from Fiat itself.
Fiat chief executive Sergio Marchionne said: "The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique."
This transaction is expected to be complete by 20 January 2013. Fiat began this merger with Chrysler in 2009 after it emerged from bankruptcy.
The deal also includes $700m additional contributions by Chrysler to VEBA in four equal annual installments in return for a series of union commitments to support the Fiat-Chrysler alliance.
Image: Fiat is set to buy remaining 41.4% stake in Chrysler Group. Photo courtesy of Fiat Group Automobiles S.p.A.
