Fiat Chrysler Automobiles (FCA) and French carmaker Groupe PSA announced merger plans on Thursday, setting the stage for the creation of a major global automobile conglomerate. The joint statement issued points to the two brands potentially merging into the world’s fourth largest automotive conglomerate.

PSA CEO Carlos Tavares said, “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity.” The potential $50 billion tie-up between the US-Italian partnership and the manufacturer could help both navigate a competitive market and bring advancements in future hybrid and electric technology at a faster pace.

Both the entities will gain a lot of value through the merger. PSA will get access to the lucrative US market while FCA would be able to strengthen its presence in Europe.

FCA and Groupe PSA have achieved total aannual sales of 8.7 million vehicles in 2018, making them the fourth largest automotive group in the world when the merger goes through.

“I am convinced that together with our great people we can create a world-class global mobility company,” added FCA CEO Mike Manley. French Finance Minister Bruno Le Maire welcomed the planned 50/50 merger. He urged PSA to preserve its French industrial footprint. FCA and PSA will jointly operate from the Netherlands.

Eleven members make up the directorial board. Five members will be nominated by FCA including John Elkann as Chairman. Groupe PSA shall nominate five more, including Senior Independent Director and Vice-Chairman. Carlos Tavares would hold the CEO position for an initial term of five years, including a seat on the board.

The merger will bring brands like Alfa Romeo, Chrysler, Citroen, Dodge, DS, Jeep, Lancia, Maserati, Opel, Peugeot, and Vauxhall under one umbrella. It will also produce the scale needed to offset slowing demand and costly investment in advanced technologies to meet environmental regulatory requirements.