The fourth largest auto company in the world buys American auto financial service provider for $285 million

Stellantis, the world's fourth-largest automaker, announced on Wednesday that its acquisition of US auto financial services firm F1 Holdings Corp, from Gallatin Point Capital LLC for $285 million in cash is expected to be completed by the end of 2021.

Although the Stellantis Group is not well known, it involves famous car brands such as Maserati, Jeep, Alfa Romeo, Chrysler and Citroen. The group was formed by the recent merger of the PSA Group and the Fiat Chrysler Group, and it is the only automaker operating in the United States without its own financial services provider.

Stellantis CEO Carlos Tavares (Carlos Tavares) said, "this transaction is a milestone for the company and an opportunity to own a financial company in the United States. this enables Stellantis to provide our customers and distributors with a complete range of financing options, including short-and medium-term retail loans, leases and exhibition loans. "

At the same time, he also mentioned that First Investors, owned by F1 Holdings, is an independent auto finance company with excellent financial and operational platform, supported by a strong management team and rich experience in the field of auto finance.

The deal could cause trouble for Chrysler Capital, which Stellantis cooperates with. In the quarter ended June, Chrysler Capital provided 33.8% financing for car sales at Stellantis, one of the largest subprime car loan providers in the United States.

Stellantis shares were up 0.15% at the close of trading on Wednesday.