The world’s fourth largest automaker is born out of a merger between makers of Peugeot and Fiat Chrysler

On October 21, Fiat Chrysler announced a merger with France’s PSA, owners of Vauxhall and Peugeot, a deal that will birth the world’s fourth-largest car company worth $50 billion.

Although the two automakers say they have yet to finalise all the details yet, and they expect a 50-50 merger is expected to provide significant cost savings, PSA will have the upper hand in the deal. PSA will be in control of the new company’s board and its CEO, Carlos Tavares in charge. Meanwhile, John Elkann, Fiat Chrysler chairman and heir of the Agnelli family dynasty that founded Fiat, would continue his role with the combined company,

In a statement, both parties noted that a binding agreement could be finalized within weeks, the statement said. Fiat Chrysler shareholders also would get a special one-time dividend worth €5.5 billion ($6.1 billion) as part of the deal. The combined company would have roughly 410,000 employees and annual revenues of $190 billion.

Fiat Chrysler and PSA in 2018 sold a combined 8.7 million vehicles, just ahead of General Motors, which sold 8.3 million. Volkswagen and Toyota are in third place, selling a little over 10 million each.

For years, Fiat Chrysler, the Italian-US business behind Jeep, Alfa Romeo, and Maserati, has been looking for a big tie-up, believing that consolidation in the global industry is needed to cut costs and overcapacity, and fund investment in electric vehicles.