Fiat buys 16% of Chrysler and now owns 46% of the American car maker

INTERNATIONAL (Agencies) Fiat has taken another step towards becoming one of the world's largest automakers when it took ownership of 46% of the US's Chrysler. The Italian firm reached an agreement to pay €869.3 million for an additional 16% of the US company. The operation is subject to a series of requirements that include payment of Chrysler's debt to the Canadian and US Governments being paid in full, according to the group's MD, Sergio Matchionne. The relationship between both firms goes back to 2009, when the Fiat group, controlled by the Agnelli family, took a 30% interest in the American manufacturer to avoid its full fledged bankruptcy. That holding is now increased to 46%, which caused a 2% upsurge in Fiat stock on the Milan exchange when the deal was announced. The present agreement includes the possibility of the Italian company acquiring a further 5% in Chrysler before the end of 2011, which would cost it nothing.